Meanwhile, unit rents increased by more than four times the rate of wages, growing 3.3 per cent across all capitals for the quarter.
Asking rents for houses and units far outpaced wage growth in an ongoing deterioration of affordability.Asking rents for houses rose by more than six times the rate of wages in the March quarter, a comparison of the Australian Bureau of Statistics wage price index with Domain rent data showed. “Rents were very affordable in Australia up until about 2020. They pretty much didn’t move for about 10 years. So people’s wages would have increased, but the rent didn’t,” Conisbee said. “We’ve seen a rapid increase in rents pretty much since the start of the pandemic.”She said a major reason was people seeking more space by moving out of share houses in favour of living alone, or needing more rooms for home offices.
“Globally, we don’t have high rates of homelessness, but if rents remain high, there is no doubt we will see more homelessness.” “This takes the pressure off the tenant, as it gives an external benchmark for how much of an increase is allowed. If a landlord wants to increase the rent by more than that, they need to prove there is a legitimate reason.”
“But can we get back to a period of rental growth being the same as inflation? That depends on the construction of new housing,” Moloney said.Conisbee said that was a challenge not just because of labour shortages but also because of taxes and regulations, which made it more expensive to invest in new housing, particularly in inner-city areas.
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