Queues of renters outside weekend rental property inspections have become a familiar sight in parts of the city in an increasingly heated competition for a dwindling supply of housing stock.
As our reports on the rental property market crisis show,inspections for rentals in Sydney’s inner and eastern suburbs have more than doubled in a year.
Many house hunters are offering real estate agents more than the advertised rates of weekly rent just to improve their chances. This new rental bidding war is pushing up prices to extraordinary levels – despite a ban on agents from soliciting rent bidding.
The Sun-Herald welcomes NSW Fair Trading flagging tougher enforcement of rental bidding laws. As Tenant’s Union of NSW chief executive officer Leo Patterson Ross observes,landlords who accept higher offers of rent are “leveraging people’s desperation”.
Advertised rents have increased by more than 10 per cent in Sydney over the past five years,according to thelatest Reserve Bank figures – which show about one-third of Australian households are renters. Those households tend to be younger,have lower incomes and less wealth than owner-occupiers.
The rental market is tight and increasing rent,combined with rising cost-of-living pressures,is compounding financial stress for many people.
Domain data shows the number of people registering to inspect properties in Sydney’s eastern suburbs was up 145 per cent in February,compared with the same time last year. Inspections of properties in central Sydney and the inner south increased by 106 per cent,with queues of up to 50 people now commonplace in suburbs such as Zetland and Chippendale.
Shortfalls of public housing for those most in need are becoming more critical,with the number of “greatest need” households on public housing waiting lists almost doubling since 2016.
As the Reserve Bank explains,rental vacancy rates have declined across Australia over the past few years,after increasing during the pandemic,especially in Sydney and Melbourne. At the same time,rent inflation has picked up over the past year as demand outstrips supply. The bank says it expects the strong growth in rents to continue over coming years.
Since the start of 2022,strong growth in advertised rents is being reflected in higher rents. A 4 per cent rise in rent inflation recorded last year was the strongest in 10 years. Thebank expects rent growth to pick up even further in the year ahead.