The Latest CoreLogic’s Rental Market Update

The Latest CoreLogic’s Rental Market Update

  02 Jan 2024

Key takeaways

Nationally rents were up 8.3% in 2023.

Growth in unit rents (10.2%) has outpaced the rise in house rents (7.5%) this year.

We can also see some significant differences across the broad regions of the country.

Rental growth across the combined regional areas of Australia slowed to 4.3% in 2023, the smallest calendar year rise since before the pandemic.

Considering we are yet to see any material response in rental supply, growth in rents is likely to remain above average in 2024.

Nationally, rents were up 8.3% in 2023, a reduction from the 9.5% rise recorded last year and 9.6% rise in 2021.

Despite the slowdown in and your rent growth, last year results are still more than four times the pre-Covid decade average of 2% per annum

In dollar terms, the annual rise in dwelling rents equates to approximately $46 more per week based on the median rental value.

The headline numbers mask the diversity that has emerged across rental markets through 2023, both across the broad housing types and geographically.

House Rents Annual Change

Source: Corelogic 2nd January 2024

While growth in unit rents (10.2%) has outpaced the rise in house rents (7.5%) this year, the annual trend is clearly slowing across most unit markets.

The more pronounced slowdown in unit rental growth could reflect slower net overseas migration through the second half of the year, especially student arrivals which are highly seasonal.

It could also be a possible sign that more unit renters are reaching their affordability ceiling as rents exceed how much they are willing or able to pay.

Unit Rents Annual Change

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