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What is The Average Rent in Australia?

April 21, 2023
average rent in Australia

Key takeaways:

    • Median rent prices are influenced by location, property type, and market conditions

    • Regional areas and suburban locations can offer more affordable rental options

    • Renters should budget for rent and expenses, understand rental agreements, and prepare a strong rental application

Rental prices can be a significant factor when considering where to live, especially in a vast and diverse country like Australia. The cost of renting varies significantly across different cities, property types, and market conditions. This article provides a comprehensive guide on the average rent in Australia, including factors affecting rental prices, tips for finding affordable rental properties, and valuable advice for Australian renters.

Average rent across capital cities

If you’re wondering how much rent you can afford, this might give you a good indication. Australia’s capital cities generally have higher rental costs than regional areas, with Sydney consistently ranking as the most expensive capital city for renters. Median weekly rents across capital cities can provide a useful comparison for renters exploring their options.

  • Median weekly rent in Sydney: $525
  • Median weekly rent in Melbourne: $430
  • Median weekly rent in Brisbane: $400
  • Median weekly rent in Adelaide: $385
  • Median weekly rent in Perth: $385
  • Median weekly rent in Hobart: $420
  • Median weekly rent in Canberra: $500
  • Median weekly rent in Darwin: $450

Factors affecting rental prices

There may be many advantages to renting, but you are often subject to potentially drastic changes in the rental market. This is one of the cons of renting when it comes to the renting vs buying debate. Rental prices are influenced by various factors, including location, property type, and market conditions.

Location

Proximity to the city centre and public transport can significantly impact rental prices. Desirable neighbourhoods with excellent amenities, schools, and job opportunities also affect prices if you are paying rent.

If you’re looking to get cheap rent, scope out the neighbourhoods outside the capital city CBDs which will most likely have lower rental prices.

Property type

Houses typically have higher rents than apartments due to their size and land component. Newer properties with modern amenities may also command higher rents than older properties with outdated features.

Market conditions

Vacancy rates and overall demand for rental properties can affect rental prices. Rent rises and rental crises can occur when demand outstrips supply, leading to increased competition for available properties.

Local economic conditions

The economic health of a particular region can influence rental costs. Areas with strong job growth and expanding industries may experience higher demand for rental properties, leading to increased rents. That’s why it’s good to be aware of what a good salary is in Australia in order to live a comfortable life in certain cities.

Conversely, areas with weaker economies and fewer job opportunities may have lower rental prices due to decreased demand.

Availability of rental properties

The number of rental properties available in an area can also affect average rent. If there is a limited supply of rental properties, the increased competition among renters can lead to higher rental costs. In contrast, areas with an ample supply of rental properties may experience lower rental prices due to decreased competition among renters.

This is why many believe renters should buy a house instead of continuing to contribute to rent.

average rent in Australia

Finding affordable rental properties

For those looking to save on rental costs, exploring regional areas or renting outside of city centres may be an option.

Exploring regional areas

Regional areas can offer more affordable rental options and a different lifestyle than capital cities. For example, towns in regional Victoria or New South Wales may have lower median weekly rents than their capital city counterparts.

Renting outside of city centres

Renting in suburban areas or on the outskirts of a capital city can provide significant savings compared to city centre locations. However, renters should consider the trade-off between lower rental costs and potentially longer commutes.

Searching for rental listings

Online resources can help renters find affordable rental properties. Timing your rental search can also make a difference, as certain times of the year may have more listings available.

average rent in Australia

Tips for renters

Navigating the rental property market can be challenging, but these tips can help you make informed decisions when looking to rent.

Budgeting for rent and expenses

Renters should allocate a percentage of their income for rent and factor in additional costs such as utilities, internet, and transportation. Renters can also consider paying rent with their credit cards to explore additional benefits, but this depends on your landlord.

Understanding rental agreements

It is crucial to understand key terms and conditions in a rental agreement, including security deposit requirements and provisions for rent increases.

Preparing a rental application

Renters should be prepared with documentation such as proof of income and rental history to demonstrate their reliability and financial stability.

average rent in Australia

More on the average rent in Australia

How is the average rent in Australia calculated?

The average rent in Australia is typically calculated by examining the cheapest rent across various locations, property types, and market conditions, providing a useful benchmark for renters.

What is the average rent in Brisbane?

The average rent in Brisbane is $764 per week for houses and $526 per week for units according to SQM Research. This is a 3.8% increase for houses and a 3.9% increase for units since the previous quarter.

The most expensive areas to rent in Brisbane are:

  • Teneriffe
  • New Farm
  • Hamilton

The cheapest areas to rent in Brisbane are:

  • Inala
  • Loganlea
  • Underwood

Why are rental prices higher in some capital cities than others?

Rental prices can be higher in some capital cities due to factors such as higher demand, proximity to city centres, and the overall desirability of the location, which influences the rental market.

Are there any government schemes or programs to assist renters in Australia?

There are government schemes and programs available to assist renters in Australia, such as affordable housing initiatives and rental assistance programs for eligible individuals. These can provide financial support and access to affordable rental properties.

Soho
Soho is your expert team in Australian real estate, offering an innovative platform for effortless property searches. With deep insights into buying, renting, and market trends, we guide you to make informed decisions, whether it's your first home or exploring new suburbs.
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