Record Rent Inflation Forces Australian Tenants to Downsize and Share Housing
-
Australia's rental housing market is facing record low vacancies and 30% price growth over 3 years, forcing tenants like Lara Weeks to downsize to smaller, more expensive units.
-
Rent is a major driver of Australia's high inflation rate, which could lead to further interest rate hikes and push landlords to increase rents more.
-
Tenants are moving from houses to apartments and share houses as units become too expensive. Rents for houses have stabilized but apartment rents jumped 4% last quarter.
-
Rent inflation is expected to peak at 10% annually before cooling. There are early signs of slowing demand in some areas like Sydney.
-
Low-income households now spend over 50% of income on rent as of April, with rents far outpacing wage growth. Some like Tim Beattie can no longer afford rent and must leave jobs or share housing.