Anyone who tells you that rent in Sydney is expensive isn’t scaring you away from the city–it’s a hard truth that you must learn to accept if you’re planning on settling in The Harbour City. As of mid-2022, real estate rentals in Sydney average at $620 for houses and $525 for units weekly, making it the second-most costly capital city to rent in, just behind Canberra.
What Is the Average Rent in Sydney?
Living in Sydney isn’t affordable compared to other capital cities. Renters can expect to pay between $550 to $700 for houses and $480 to $600 for units weekly in Sydney. The median asking price for rentals has recently increased significantly, up by about $70 per week versus last year. The spike can generally be attributed to the housing market’s inability to keep up with growing demand, which can be seen in low vacancy rates throughout the city.
Finding cheap Sydney apartments is already much easier and more affordable than houses, with new developments constantly being built.
Rent in Sydney Through the Years
Sydney’s rental market has seen its fair share of ups and downs in the past few years. An investor boom between 2013 and 2017 led to a peak in rentals in the following years, but the pandemic drew this upward trend to a halt.
Foreign renters left the city and locals fled to the countryside, leaving Sydney with a surplus of available rental properties. But the market quickly–and quite drastically–bounced up at the tail-end of 2020 and the beginning of 2021, leading to today’s record-high rental prices. If you’re looking for cheap houses for rent in Sydney’s Western Suburbs, you can expect to pay upwards of $400 per week.
Here’s a look at the median rent in Sydney in the past four years:
- 2022: Houses at $620, units at $525 per week
- 2021: Houses at $550, units at $470 per week
- 2020: Houses at $530, units at $500 per week
- 2019: Houses at $530, units at $525 per week
Why Rent in Sydney Is So Expensive
But why is rent in Sydney so expensive, anyway? Here are some reasons why rental prices in the capital city are so high right now:
Low Housing Supply
The biggest factor in the spike in rental prices is the lack of housing in the city. Construction of new properties has been slow, and even the government’s social housing program has fallen short in creating enough accommodation for low-income renters. This leaves locals no choice but to work with what’s available, transforming the industry into a landlord’s market with high prices that renters can’t help but pay.
An influx of People Returning to the City
A low housing supply coupled with a large population is a recipe for an expensive real estate market. This is exactly the case in Sydney, and the supply-and-demand ratio is becoming even more unbalanced as people come back to the city. The demand is high, but the supply is scarce, so a price increase is inevitable.
Improving Consumer Sentiment
With the pandemic slowing down, consumer sentiment is improving. People are more confident about spending, especially with a rise in household savings in recent years, and the real estate market is taking advantage of this heightened spending power among renters.
How to Save on Rent in Sydney
Renting in Sydney doesn’t have to cost an arm and a leg. With a good understanding of your financial situation, some flexibility, and a few street smarts, you can find great properties at affordable prices. Here are some tips to help you save on rent in Sydney:
Make a Budget
Compare your income with your projected expenses, then set a comfortable budget for rent before you even set off searching for a property. Keeping this number in mind will make sure that you never pay more than what you can.
Be Flexible
It can be difficult to find the perfect rental in today’s market, so be flexible with your criteria. Prioritise your must-haves and be willing to accept the possibility that you may have to settle with just that.
Get a Roommate
If you have no problem bunking with a friend, then consider getting a roommate. You can save a lot as you’re not only splitting the rent but some of the daily costs of living, as well.
Move to the Suburbs
Sydney rentals are most expensive in the central business district (CBD) and nearby areas. The further away you are, the cheaper the prices will be. If you don’t need to be at the heart of it all and are willing to make a regular commute, then set your sights on the suburbs.
Find Affordable Rentals in Sydney With Soho
Another tip for finding an affordable rental is to know where to look–Soho is a great place to find a property as it provides you with homes and units that best match your budget and preferences. Download our app today to get the full experience of shortlisting and saving your ideal rentals until you find your perfect match!
