Sydney has always been notorious for its expensive real estate, but now, the average rent in Sydney is at a record high. The weekly median price of rental houses goes for $620, while rental units average at $525–up to $70 more than what Sydneysiders paid for the same last year. Historically, these numbers have been attributed to an imbalance in housing supply and demand; Sydney properties can’t keep up with the number of people settling in the city.
That’s still true today, especially as borders open up and foreigners and locals alike are flocking back to the central business district (CBD). However, low mortgages, an increase in household savings, and improving customer sentiment have continued to play a part in the rise of prices of houses for rent in Sydney.
How Much is Rent in Sydney?
Rent in Sydney has fluctuated through the years. After an investor boom, rentals skyrocketed between 2017 to 2019. The upward trend came to a stop once the pandemic hit as renters left the city, though, causing high vacancy rates throughout. As border restrictions eased up and things started going back to normal, the market drastically bounced back up and has been on a continuous rise until today.
In mid-2022, the average rent in Sydney was recorded to be between $550 to $700 for houses and $480 to $600 for units weekly. If you’re looking for a cheap one bedroom apartment for rent in Sydney, you can expect to pay around $300-$350 in the more affordable suburbs. Alternatively, you can find cheap houses for rent in Sydney’s Western Suburbs like Colyton and Blacktown for around $350-$450 a week.
Why Sydney Rentals Are So Expensive
The high prices of Sydney rentals are caused by an ongoing low supply of housing in contrast to the increasing demand for accommodation. Coupled with high savings and improving customer sentiment, the entire situation has become a landlord’s market where desperate renters have no choice but to accept expensive rates. Here’s a deeper look into why rent is so expensive in Sydney:
There Are Not Enough Properties
There’s a great imbalance between the supply and demand of housing in Sydney–there are simply not enough rentals for everyone who wants one. And there are more people looking for cheap Sydney apartments than other property types and budgets.
This opens up the opportunity to increase rent, as people are desperate to get a roof over their head–so much so that they don’t mind paying a premium price to do it.
In recent years, there have been targets set to increase housing in the city, even with the government’s own social housing program, but these have fallen short, leading people to work with what’s available.
More People Are Moving Back to Sydney
The pandemic forced foreigners home and drove city dwellers into the countryside, causing high vacancy rates and low rents in Sydney. However, because everything is going back to normal, people are moving back, making the hunt for affordable properties more competitive.
Renters Can Spend
Thanks to low mortgage rates and high household savings, people are more confident in renting, nowadays. The real estate market recognises this improvement in consumer sentiment and is steadily keeping prices high to capitalise on people’s spending confidence.
Tips for Renting in Sydney on a Budget
Renting in Sydney doesn’t have to be expensive–there are ways to keep your budget intact, from being real estate savvy to flexibly exploring your options. Here are some tips to save on rentals in Sydney:
Move in Winter
Want to know the best time to rent in Sydney? It’s over the winter, when the weather is colder and people are less inclined to pack up and move.
Do Your Research
Learn about how rent is calculated in Sydney, best practices in renting, and how to find the most ideal properties. Knowing these things can help you set a comfortable spending limit, smoothly process your offers, and find the best rentals that others might not even know about. If you’re always one step ahead in preparation, then you’re better equipped to be the one to end up with the keys at the end of the day.
Bunk Up with Someone
Having a roommate is a great way to save as you’re not only splitting the rent, but you can also make arrangements to share in other daily expenses such as utilities, groceries, and even gas. Find a friend who’s willing to bunk up with you or search for other willing strangers who are also looking for cheaper accommodation options.
Go to the Suburbs
Rentals in Sydney’s CBD will be expensive. Unless you absolutely need to be in the middle of the action, consider looking further away–into the suburbs–for cheaper options. Your buck will go a long way; you’re likely to find properties with bigger space and more amenities for the same price as a tiny studio in the heart of the city. If you’re going this route, though, do factor in the tradeoffs.
Find an Affordable Rental Property in Sydney With Soho
Finding affordable rentals is easy when you do it with Soho. You can search for your ideal property on our web page or you can download our app for a better experience. Shortlist rentals you love and receive even better matches as you go. Find your next home with Soho today!
