Rents have dropped in Sydney and Melbourne but other cities are still cheaper to rent in. Picture: NCA NewsWire/Joel CarrettSource:News Corp Australia
Adelaide is the cheapest place to rent in Australia but Melbourne renters are also winning as prices have barely increased in the past 12 months.
A house in Adelaide costs someone a median of $410 a week to rent, while Perth comes in a a close second at $420, but prices have risen by more than 5 per cent and 10 per cent in the past 12 months, according to REA data.
While Melbourne house rent is more expensive compared to other capitals, sitting at $440 a week, it has only increased by 0.46 per cent in the last year.
This means renting is now more expensive in Adelaide and Perth compared to last year, whereas it’s the same price in Melbourne year on year, the REA data found.
Canberra is the most expensive place to rent a house in Australia costing an average of $590 a week, while Sydney comes in a close second at $550.
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Renting is now more expensive in Adelaide and Perth compared to last year, whereas it’s the same price in Melbourne year on year. Picture: NCA NewsWire/Joel CarrettSource:News Corp Australia
Shockingly, Darwin is one of the most expensive places in the country to rent too, with an average cost of $530 for a house, which has risen more than 12 per cent in the past year.
Cameron Kusher, REA group director of economic research said some parts of Australia are experiencing are experiencing “major challenges” when it comes to rentals.
“While the lack of migration to Australia potentially means reduced rental demand, it hasn’t really shown up in rental price growth with weekly rents surging across most regions of the country, particularly, in Perth and Darwin and regional housing markets,” he told news.com.au.
“Migration to regional markets and Brisbane in particular has created additional rental demand in these areas pushing rental costs higher.
“The supply of rental stock is becoming a major challenge, particularly in regional areas of the country. It’s likely this trend will continue and so we would expect rental rates to continue to rise in these areas.”
While Adelaide and Perth still took out the crown for the cheapest places to rent a unit, coming in at $335 and $370 a week, there was good news in two of Australia’s most expensive cities.
Rental prices have dropped for units in Melbourne and Sydney. Picture: SuppliedSource:Supplied
Melbourne and Sydney median weekly rent has decreased in the past 12 months, so rent is now cheaper in comparison to June 2020, the REA data found.
The median cost of weekly rent in Sydney for an apartment sits at $480, while in Melbourne its $395.
“The laggards are overwhelmingly the unit markets in Sydney and Melbourne where rents have fallen by 4 per cent and 3.7 per cent over the past year. This is really where the impact of shut borders is being most acutely felt and are the two largest rental markets in the country,” Mr Kusher explained.
“It isn’t just the closed international borders which have affected rents. Internal migration out of Sydney and Melbourne, as well as fewer people leaving other states for Sydney and Melbourne has had an impact.”
Once again, Canberra is the most expensive place to rent an apartment with a median weekly price of $490.