Australian rental increases the highest on record in capital cities
Australian capital cities have experienced the strongest annual rental increase in history, says CoreLogic.
Aussie renters have been feeling the brunt of the cash rate increases as landlords pass on the rates to their tenants. All across the country renters have seen their rent increase by an average of $52 per week or $2,727 per year.
According to a new CoreLogic report, the national dwelling rental index increased by 0.8% to 2.8% over the last three months. And the combined rental increases in the capital cities went up 11.7% in the last year.
The uptick in rental prices can be attributed to several factors besides the cash rate hikes. Notably, the increase in immigration after two years of closed borders, which includes international students and new migrants, has created a massive supply and demand issue. Throw in the lack of new constructions and suddenly there is a scarcity of available and affordable places to rent.
The median rent in Australia May 2023 (Source: CoreLogic)
| Median Rent | |
| Perth | $573 |
| Darwin | $588 |
| Canberra | $674 |
| Brisbane | $599 |
| Sydney | $699 |
| Melbourne | $526 |
| Hobart | $563 |
| Adelaide | $531 |
| Combined Capital | $594 |
| Combined Regional | $507 |
| National | $570 |
“The total supply of capital city rental listings was -20.9% below the level recorded this time last year and -39.8% below the five-year average,” the report notes.
“With the exception of Hobart and Canberra, vacancy rates across the capitals remain near record lows, and well below the 3% to 5% average rate considered indicative of a balanced rental market.”
CoreLogic says it's unlikely there’ll be a relief for renters for the short to medium term as rental supply is expected to remain low due to the lack of new unit construction approvals.
For now, all renters can do is sit tight or consider buying their own property. If what you pay monthly for rent is equivalent to a mortgage repayment it might be better to put that money towards having your own home.
If you don’t know where to start, check out Mozo’s home loan guides or compare home loans below to see what you can afford.
Home loan comparisons on Mozo
Promoted
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Basic Home Loan
- Owner Occupier
- LVR 90-95%
- Principal & Interest
Go to site- Interest rate
-
7.19
%
p.a.
Variable
- Comparison rate
-
7.22
%
p.a.
- Initial monthly repayment
-
$4,747
- Interest rate
-
7.19
%
p.a.
Variable
- Comparison rate
-
7.22
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 95.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
OMG Home Loan
- Owner Occupier
- Principal & Interest
- >80% LVR
Go to site- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.32
%
p.a.
- Initial monthly repayment
-
$4,328
BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.32
%
p.a.
- Upfront fees
-
$300
- Ongoing fees
-
$0.00
- Discharge fee
-
$395.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 95.00%
- Minimum borrowing amount
- $20,000
- Maximum borrowing amount
- $1,500,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this BCU Bank OMG Home Loan
-
Basic Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR 80-95%
Go to site- Interest rate
-
6.75
%
p.a.
Fixed 3 years
- Comparison rate
-
7.09
%
p.a.
- Initial monthly repayment
-
$4,540
Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
- Interest rate
-
6.75
%
p.a.
Fixed 3 years
- Comparison rate
-
7.09
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 95.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Offset Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR 80-95%
Go to site- Interest rate
-
6.75
%
p.a.
Fixed 3 years
- Comparison rate
-
7.30
%
p.a.
- Initial monthly repayment
-
$4,540
- Interest rate
-
6.75
%
p.a.
Fixed 3 years
- Comparison rate
-
7.30
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$248.00 yearly
- Discharge fee
-
$400.00
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 95.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
-
Special Real Deal Home Loan
- Owner Occupier
- Principal & Interest
- LVR 80-95%
Go to site- Interest rate
-
6.84
%
p.a.
Variable
- Comparison rate
-
6.88
%
p.a.
- Initial monthly repayment
-
$4,582
Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.
- Interest rate
-
6.84
%
p.a.
Variable
- Comparison rate
-
6.88
%
p.a.
- Upfront fees
-
$595
- Ongoing fees
-
$0.00
- Discharge fee
-
$250.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - fees apply
- Offset account
-
no
- Maximum loan to value ratio
- 95.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Newcastle Permanent Special Real Deal Home Loan
-
Basic Home Loan
- Owner Occupier
- LVR 90-95%
- Principal & Interest
Go to site- Interest rate
-
7.19
%
p.a.
Variable
- Comparison rate
-
7.22
%
p.a.
- Initial monthly repayment
-
$4,747
- Interest rate
-
7.19
%
p.a.
Variable
- Comparison rate
-
7.22
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 95.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Offset Home Loan
- Owner Occupier
- LVR 90-95%
- Principal & Interest
Go to site- Interest rate
-
7.19
%
p.a.
Variable
- Comparison rate
-
7.43
%
p.a.
- Initial monthly repayment
-
$4,747
- Interest rate
-
7.19
%
p.a.
Variable
- Comparison rate
-
7.43
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$248.00 yearly
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 95.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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