There is a decrease of the average vacancies rate in rental market. As a result, the rental price is going high. The main reasons are the growth of the population and no new construction is being done in the housing sector. Also, there are less home buyers due to the high interest rate will affect the housing market. Many people especially the low income group people turn to rental market that make the rental market tighter.
The rentals all over Australia have hit an extreme low. The average vacancies rate went down to almost 1.9 over the past two years. This figure was put forward by the REIA Real Estate Market Facts.
According to the Real Estate Institute the vacancy rate in rental in Darwin is at the lowest since 1999. Here the rate has dropped to almost 0.3 percent. In places like Alice Spring it has dropped to 0.5 percent. In Perth the rate is 0.8 percent. Everywhere you can see the ‘No Vacancy’ board.
At the moment you will hardly find a rental property in the market. If the vacancy rate is below 3 percent it means that the supply of houses in the market for rental is very inadequate. In the Northern territory there are about forty thousand homes only about hundred and fifty five homes available in Darwin and about fifteen in Alice Spring. This does not include the homes in the rural area.
Rob Druitt, president of the REIWA says that the situation is very dismal, never before a vacancy rate so low has been recorded by the institute. The weekly metropolitan rents have increased by almost four per cent in the quarter to two hundred and seventy dollars.
One of the main reasons for the drop in vacancy rate is the population growth and no new construction is being done in the housing sector. The drop in the first time home buyers have also made the market very tight due to the high interest rate.
All this have led to a steep increase in the rentals all across the country. Decline in the home loan affordability and the high price of the houses have put an incredible pressure on the rental market. More and more people are turning to the rental market especially the people earning low income.
Darwin is considered to be an expensive rental location. Here there is a thirty four percent yearly increase in median rent of four hundred and forty dollars per week for a three bed room house. A two-bedroom house is at fifty one percent, this brings the median rent up to three hundred and forty per week.
In Adelaide one can find the cheapest rental house. One can get a three bedroom house for the rent of two hundred and twenty five dollars per week and a two bedroom house at the rate of two hundred and five dollars per week. Even in these parts there is an increase of almost eight percent in the recent months.
The vacancy rate should improve in the coming months. There is a slow down on the rent increase. May be this is because the affordability cap has been reached by many people. It is also been seen that people are holding on to their rental place and paying higher rent than seek out a new place.
Author Resource:-
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