The Australian residential property market is the section of the

Australian property market The Australian property market comprises the trade of land and its permanent fixtures located within Australia. The average Australian property price grew 0.5% per year from 1890 to 1990 after inflation,Stapledon, Nigel. A History of Housing Price ...

that provides rental properties by

landlords A landlord is the owner of a house, apartment, condominium, land, or real estate which is rented or leased to an individual or business, who is called a tenant (also a ''lessee'' or ''renter''). When a juristic person is in this position, the te ...

tenants A leasehold estate is an ownership of a temporary right to hold land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord. Although a tenant does hold rights to real property, a l ...

. In

Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...

31% of households are rented. In 2022 the Australian residential rental market saw an annual increase in rents of 12%, the strongest increase in 14 years. Some areas have seen increases from 33% to 42% between 2020 and 2022. In Bellingen on the

NSW ) , nickname = , image_map = New South Wales in Australia.svg , map_caption = Location of New South Wales in AustraliaCoordinates: , subdivision_type = Country , subdivision_name = Australia , established_title = Before federation , es ...

coast the annual rent increase at December 2021 was 48%. Across Australia the vacancy rate was 1%, when a rate below 2% is considered very competitive with affordability constraints impacting tenants. A number of sources have described the situation as a ‘rental crisis’ with low income households in particular unable to find suitable accommodation and forced to relocate, live with family or friends, live in garages or cars. The primary reason for the rental crisis is a lack of supply due to a variety of reasons, including existing landlords selling their rental properties with a large proportion being purchased by

owner-occupier Owner-occupancy or home-ownership is a form of housing tenure in which a person, called the owner-occupier, owner-occupant, or home owner, owns the home in which they live. The home can be a house, such as a single-family house, an apartment, con ...

s resulting in an overall reduction in the number of rental properties. Landlords switching their properties to the short term rental market such as

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has also been cited as a reason for the reduction in available rental properties. Other commentators cited a lack of social housing being provided by the government, which is supported by

Australian Bureau of Statistics The Australian Bureau of Statistics (ABS) is the independent statutory agency of the Australian Government responsible for statistical collection and analysis and for giving evidence-based advice to federal, state and territory governments ...

figures which highlight between 2000 and 2020 the proportion of households renting from state/territory housing authorities has declined from 6% to 3%. The

Covid-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was COVID-19 pandemic in Hubei, identified in Wuhan, China, in December ...

pandemic has also impacted the rental market with shared households reducing in size creating additional demand and city workers needing additional rooms for home offices and moving to regional areas due to the rise of

remote working Remote work, also called work from home (WFH), work from anywhere, telework, remote job, mobile work, and distance work is an employment arrangement in which employees do not commute to a central place of work, such as an office building, ware ...

References

{{DEFAULTSORT:Australian Property Market Real estate in Australia Economy of Australia Housing in Australia

See also

References