Perth families looking for four-bedroom homes have been hit hardest by Perth’s worsening rental crisis, with new industry figures showing they have suffered the highest rent rises in 12 months.
The PropTrack Market Insight report shows that rents for four-bedroom homes have increased by 12.2 per cent over the past 12 months, while three-bedroom homes have increased by 9.5 per cent.
This comes as rental levels on reiwa.com hit a 12-year low this week, with just 1,675 properties available for rent at the end of September.
The latest PropTrack report and data from REIWA show that the average rental price of homes reached $495 in September.
According to PropTrack, the median rent for a home rose to $420 in the September 2022 quarter, a 6.3 percent year-over-year increase.
At the same time, the rent increased by 10 percent over the past year, and by 3.1 percent over the quarter.
PropTrack’s director of economic research and author of the report, Cameron Kusher, said critically low inventory levels and population growth are proving to be a potent cocktail for further rent increases.
“More and more people are coming back to the country and most people who come to Australia don’t have a place to live right away; they need to be rented,” he said.
“It’s also getting harder for people to move out of renting and into home ownership because interest rates have risen so dramatically that people can’t borrow as much and it’s getting harder to get finance, so we realistically think rents are only going to go down in one direction , and that’s something they’re going to keep going up,” he added.
Among the gloomier news for WA renters, Mr Kusher said the level of investor purchases over the past five to 10 years had been below average.
“We have complicated the work of investors. We’re charging them higher land tax, we’re charging them higher interest rates, we’ve restricted credit for investors, and basically what’s happening as a result of all these things is we’ve got fewer investors and now we’ve got a rental crisis.” , he said.