Whoever’s asking what the average rent in Sydney is will already know that it’s amongst the highest in Australia.
The average cost of rent in the capital city of Sydney is a hot issue for individuals. People think about moving to the city because it is one of Australia’s largest cities. It would be heaven on earth living in this breathtaking city! It is a populous city (in a good way) and is an exhilarating vacation spot for tourists and those on business travel.
What’s special about Sydney, you ask? Well, that’s a no-brainer! Beautiful beaches and a thriving cultural scene are what Sydney offers. But all this comes with a high cost of living in Sydney are all attributes of the city of Sydney. All good things come with a price, after all, right?
Now, I know the question on the mind of everyone looking for a rental property – what is the average rent in Sydney? You’re not wrong for thinking it. You have to be equipped with all the knowledge about renting in this lovely city to avoid unfortunate financial conundrums.
We’ll look more closely at Sydney’s average rent and the factors that affect it, so, read on and let’s feed your mind with the nitty gritty!
Further Reading: Want to know if rent prices will go down in 2024? Explore Soho’s article.
Average rent prices in Sydney
The average weekly rent for a house in Sydney is a record high of about $560 per week. The average typical weekly rent for apartments and houses that Australians spend is about $480.
The median weekly rent in Sydney has seen a notable shift in 2023. While the average rent for a unit rent in Sydney remains high, there has been a slight adjustment in prices due to the evolving rental market trends.
Australians spend a significant portion of their income on rent, with Sydney often surpassing the national average. This year, the median weekly rent offers a more nuanced understanding of the rental costs, as it accounts for the extremes at both ends of the market.
Hold on though! Rent price largely depends on the location, size, and age of the property. It is extremely important that you keep in mind your income and the median weekly rent as well.
Want to see more? Explore more apartments for rent in Sydney on Soho!
Expensive areas to rent in Sydney
The Eastern Suburbs and Lower North Shore are often the most expensive regions to rent in Sydney.
In these regions and cities, the typical weekly rent for a house in the city might reach $1,500. Yep, you heard me right. Why is rent so expensive in Sydney in these areas? In Layman’s, demand and supply. With the rising population, so are suburbs and consequently, property prices.
For renting a flat, Australians spend $700 to $1200 in the most expensive cities. It is difficult for all to afford as statistics mention in the listings.
Cheapest suburbs to rent in Sydney
Discouraged? Don’t be, pal. There are other places to rent in Sydney that are more reasonably priced.
Want to know the cheapest suburbs to rent in Sydney? Average weekly rents are often lower in the Western Suburbs, South-Western Sydney, and Outer-Western Sydney. The typical median weekly rent for a home in these neighbourhoods is $400.
The city-median average weekly rent for a flat might range from $350 to $500, as per the listings.
If you’re looking for cheap 1 bedroom apartments for rent in Sydney, you can check out areas like Blacktown.
Factors that affect rent prices in Sydney
- Remember that rental price averages are just averages. They are not genuine prices.
- Rent can be affected by proximity to public transport, schools, and stores.
- A property’s size, age, and condition can also impact the rental price.
Supply and demand in the rental market
The supply of houses and demand for housing can also have an impact comparing rents.
You can check this on Sydney’s rental market in addition to these other variables. Rents may rise if more renters are searching for homes than there are homes available to rent.
Rents can rise if there are more available properties than there are renters.
Rental Market Trends: Vacancy Rates and Rental Crisis
The vacancy rate in Sydney has been a telling sign of the current rental crisis. With a lower vacancy rate than cities like Melbourne, Sydney’s rental market is tighter, which can push up rental costs.
The rental vacancy rates are a key metric that indicates the availability of rental accommodation, and as of 2023, these rates have been lower than in previous years, signaling a competitive market for tenants.
Comparing Sydney to Melbourne: Rental Price Wars
While Sydney has traditionally had a higher rental price than Melbourne, the gap between these two major cities has been closing.
The median rent across both cities shows that Sydney maintains the highest median rent, but Melbourne has seen a faster increase in rental yield, making it an emerging concern for renters in Victoria.
The Impact of International Students on Sydney’s Rental Market
The influx of international students looking to secure a rental in Sydney has significantly influenced the rental demand.
As universities open their doors to international enrolments, the demand for rental accommodation near educational institutions has surged. This has contributed to the rental market trends, with one-bedroom apartments in Sydney being particularly sought after.
Rental Supply and Sydney’s Property Market
Sydney’s property market has always been dynamic, but 2023 has brought its own set of challenges. The rental supply has struggled to keep up with demand, leading to a competitive environment where house rents and median unit costs have increased.
Reports from SQM Research indicate that the median rental for a house and unit has seen a rise, with rental vacancy rates remaining low, especially in inner-city areas.
The Economics Behind the Rental Market
Economists have been closely monitoring the rental market trends, noting that the rental crisis is not just a matter of high demand but also of the rental yield that property investors are seeking.
The senior economist at a leading research firm points out that the rental accommodation costs are being driven up not only by demand but also by the rental trends in investment properties and the overall house price market.
Is It Difficult to Get a Rental in Sydney?
For those looking to move to Sydney, understanding the current rental market is crucial. The process to secure a rental has become more competitive, with property management firms reporting an increase in applications per property.
This has been particularly challenging for renters lately, as the property investors are also navigating the changing landscape of the Sydney rental market.
People also ask
What is the typical bond amount for Sydney renters?
Good question this is. Four weeks’ rent is often the bond amount of rent and interest in rental prices in Sydney. This money, as rent and interest, is a down payment for the house.
It also works as a security deposit kept by the landlord or rental company for the life of the lease.
What expenses are covered by the rent in Sydney?
The cost of leasing a property is normally included in paying the rent in Sydney. The utilities like electricity, gas, and water may not be included in rent in the cities.
In other rental properties, internet or cable may also be included in the cost of the rent. In other homes, tenants may need to set up and pay rent for these services individually.
Are there any short-term rentals in Sydney?
Oh yes! There are short-term rental units in the city centre of Sydney. They are frequently more expensive than the average long-term rental units.
Rentals for a short period in expensive cities are frequently furnished apartment units, houses units or vacation homes units. The average of this can range from a few days to an average of a few months.
How long do most leases last in Sydney?
Sydney leases are typically 12 months long. They can be shorter or longer depending on the landlord and market conditions.
Longer leases, like those of two years, could be a requirement for some landlords.
Some landlords may be fine with shorter leases.
How does renting a house work in Sydney?
You need to present your identity, proof of income and references from past landlords. You could be required to submit a rental application and have your credit checked. You must pay the bond and the first month’s median rent when your rent application is accepted.
