Canberra and Sydney are the most expensive cities for renters with the median unit price coming in at $550 per week, followed by Darwin ($520 per week), Brisbane ($465 per week), and Hobart ($462.50 per week).
Many renters like to rely on the 30% rule, which means a maximum of 30% of your income goes to rent. An ideal amount is about 20%, but 25% is also a good target to aim for. However, this isn't always feasible on a low income, as average rents in your chosen area may well be above 30% of what you're earning.
Canberra remains Australia's most expensive capital city in which to rent a house at a median cost of $690 per week, ahead of Sydney on $660, according to the Domain Rent Report March 2023 Quarter released today.
While there's no consensus on what rents will do exactly in 2023 — go up a little, go down a little, or stay flat, according to three forecasts — what's clear is they are expected to return to more normal growth patterns, instead of the unsustainable, record rates seen in 2021 and 2022.
Analysts say open borders and increased migration have driven demand for real estate – and increases in rental prices. What matters for rents, as for any price, is the demand for and the supply of the product being priced. More demand (more renters wanting properties) and the price climbs.
Overall, Canberra remains the most expensive capital city to rent a house in, with median weekly rents sitting at $690. Sydney takes second place at $650 per week, followed by Darwin ($620 per week), Hobart ($550 per week), and Brisbane ($550 per week).
Adelaide ($443 a week) South Australia's capital is the cheapest capital city in the country to rent a unit, with the median price hovering around $450 a week.
Australia rental crisis is worsening amid skyrocketing prices, low vacancy rates.
au's analysis showed that, even if prices rose at a similar rate to inflation over the next five years, the median house price would still be near $1.5m in 2027.
Over the past year, rental market conditions have tightened considerably in cities across Australia. As a result, rents are now growing strongly all across the country. Going into 2023, rental market pressures – and housing shortages – are more acute than before the pandemic.
No suburb in the country features a greater concentration of members of The List – Australia's Richest 250 than Toorak, where Melbourne's wealthiest families have gathered for decades. Think historic looking mansions guarded by large hedges set back from the street to ensure privacy.
Beachside suburbs like Coogee and Bondi come out on top for liveability. Close enough to the city centre while existing in their own bubble, these coastal hotspots offer exquisite views and a space to breathe away from the commotion. For trendy inner-city living, try Paddington and Potts Point.
If you make $70,000 a year living in Australia, you will be taxed $14,617. That means that your net pay will be $55,383 per year, or $4,615 per month.
Spending around 30% of your income on rent is generally considered the golden rule on finding the right property. It's a percentage that should help you strike a balance between comfort and affordability.
Nationwide prices are expected to rise by approximately 2 per cent by the end of 2023. However, as the RBA potentially cuts interest rates before the end of 2023, demand pressures will contribute to a favourable environment for property prices.
Westpac has revised its house price forecasts, with dwelling values expected to stabilise in 2023 (initially forecast a -7% decline). National dwelling values are predicted to rise 5% in 2024, up from 2%.
In Australia, the average life of a brick home is 88 years and a timber home is 58 years (Snow and Prasad 2011). Many homes last much longer than this. Decisions that are made about homes today will continue to have consequences for many decades.
Rent inflation for apartments with new tenants was 24 per cent over the year to February 2023, whereas the overall index increased by 14 per cent. By contrast, rent inflation for houses and townhouses with new tenants was around 10 per cent over the year to February 2023.
This measure shows the proportion of low-income renter households paying more than 30% of their income on rent – that is, those in rental stress.
House prices in Australia are extremely high compared to income, relative to other countries. The market is propped up by rules that provide tax deductions for property investment, and by repeated state government bonuses for first home buyers. Furthermore, the supply of new homes is hard to generate.
Two years into the pandemic, Australian's housing preferences' have shifted to regional areas as they seek affordability and a beachside or nature-bound lifestyle. This has made the search for a rental a lot easier in some parts of inner Sydney and Melbourne.
Sydney is still the most expensive city in Australia — you'll pay around a quarter more for living expenses in Sydney than if you lived in Darwin or Melbourne, and even more if you stayed in Adelaide or Hobart. The overall costs of living in Adelaide and Hobart are very similar.
Perth has taken the crown from Adelaide as most affordable capital in Australia. Image: Canva. A new report has officially declared Perth as the most affordable capital city in Australia.