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“The highest rental growth has been in apartment rents, particularly at the lower end. This shows just how tight Australians are living. Affordability is a top concern for renters,” Powell said.
“Over the past few years, we’ve seen a consistent rate of growth in apartment rents that’s higher than house rents.”
Mascot tenant Stephen Pasfield and his wife will have to move in with their daughter, who also rents, after facing multiple rent increases.
“We’re completely shut out. Real estate agents know their market prices can go up and up because people have no choice. There’s so much demand and so few properties to choose from,” said the 65-year-old, who also serves as his wife’s caregiver.
The couple are already in rental stress, paying $950 a week in rent, which is expected to rise again, and they are dipping into their superannuation to make ends meet, even with the husband working part-time.
Stephen Passfield is struggling with rising rents for his Mascot apartment in Sydney. Another rent increase means he and his wife may have to move in with their daughter. Credit: Jenny Barrett
“We always worry about when our pension will run out. It’s always a concern when you’re at this stage in life,” Pasfield said.
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“A few years ago it would have been easy to consider renting for life, but now it’s become extremely difficult,” he said. “We did consider moving to the countryside, but then you have to consider the distance to the hospital, friends and family. It’s a problem.”
Sarah Elkordi, a tenant agent and founder of the Rent Fairy, said all tenants were being squeezed by rising rents.
“This is a ridiculous situation,” Elkodi said.
“The cost of living is tough for renters, and rising costs are forcing people to move. They’re moving in with family or people they don’t know, or even moving interstate.”
Elkodi said tenants who compromise on location will end up in unsuitable housing.
“You can live further away for less money but your quality of life goes down … (one renter) is living in a one-bedroom apartment in Westmead because it’s only one train ride into the city and they’re getting sick because of the mould in their apartment.”
St George Bank chief economist Besa Deda said demand for cheaper areas away from Sydney’s CBD and coastline would persist.
“There is evidence that people are looking for more affordable rental accommodation, particularly as the cost of living continues to tighten, so people are tightening their purse strings,” she said.
A few wealthy areas bucked the trend. In addition to Bellevue Hill, North Bondi (29 per cent) and Coogee (26.3 per cent) both saw rent increases.
“Suburbs in the inner city ring and close to the coastline will continue to remain popular, but I also expect that families who are feeling more pressured by the cost of living may consider moving,” she said.
She said rental pressures would persist due to housing shortages and strong population growth, while residential construction was likely to slow.
But she noted the rate of increase was softer as tenants who may have lived alone during lockdown looked to share a home or rent out a spare bedroom to cut costs.
“I don’t think they’re going to continue to accelerate at the same rate as last year, but I think the rate of increase will remain at a level that means households will continue to face cost of living pressures.”
With Elizabeth Redman
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