ACT renters should not be surprised in the slightest – Canberra is still the most expensive capital city to rent in the country.
According to CoreLogic’s December Quarter Rental Review, Canberra’s typical dwellings rental median sits at $651 per week, remaining in the top spot as the most expensive capital city to rent in Australia.
Throughout 2021, Canberra’s rental average for all dwellings grew by 8.0 per cent, rising by 2.1 per cent in the December quarter alone.
Canberra’s median rent for a house costs an average of $714 per week, while a typical unit sits at an average of $541 per week.
It costs $247 more per week to rent a house in Canberra compared to a rental in Adelaide, which is the most affordable capital city for renters in Australia.
According to the review, Canberra’s most expensive suburb to rent a house is Campbell and the most affordable is the suburb of Cook.
For units, the most expensive suburb is Forrest while the most affordable is Curtin.
Executive Director of Better Renting, Joel Dignam, said he’s not surprised that Canberra has taken out the top spot yet again, but he is disappointed.
“Behind these numbers are a lot of people worrying about how they can afford to rent their current home and their future home,” he said.
“I would like to have hope that rental costs will decrease but I think the signs are not promising. One thing that does give me relief is the move towards minimum rental standards within the ACT, as reducing the cost of rental bills are a big part of people’s costs.
“Longer term, we need more houses for people on lower incomes. Better protections against rent increases is a good step to stop people having to leave their current homes … but then there’s the response that people should leave to find more affordable rentals, yet the current market doesn’t meet that.”
CoreLogic Research Director, Tim Lawless, said among many additional factors, the demand for detached housing and the ongoing lack of supply is putting the rental market under extraordinary pressure.
“While demand has risen, we generally haven’t seen much of a supply response. Australia’s rental market is most reliant on private sector investors to provide rental housing,” Mr Lawless said.
“Investors as a proportion of total mortgage demand moved through record lows in early 2021, highlighting relatively low levels of investment activity across the country and also implying relatively low levels of new rental stock coming onto the market.
“Arguably the regions have less elasticity in rental markets, meaning, when demand rises, supply is less responsive than capital cities where investors are generally more active.”
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