According to a Sydney development lobby, the low levels of new home construction in NSW is pushing rents up more than nine times the rate of inflation.
Based on quarterly figures compiled by the Real Estate Institute, the average Sydney rents rose by $10 a week in the past three months, and by $20 a week in the past year.
According to Urban Taskforce Australia, which represents property developers, the median weekly rent for a two bedroom home in inner-city Sydney suburbs is now $540 a week – $25 more than what it was three months ago.
A three-bedroom in the same region on average sets renters back $725 a week – up $25 in three months.
These increases are now at levels which are more than nine times the rate of inflation.
One bedroom homes at Willoughby, North Sydney and Mosman command average weekly rents of $400, while at Waverley and Woollahra, in Sydney’s east, one bedroom homes are, on average, $420 a week.
It is clear that the high rents and the fast levels at which rentals are growing are due to a lack of housing and low levels of construction.
While there is a shortfall in all states the Sydney market appears to be the hardest hit.
“No Australian capital city approves less new homes per head of population than Sydney.
In the past financial year, Mr Gadiel said 15,000 apartments and townhouses had been approved in Melbourne, compared to 11,000 in Sydney.
Urgent government action is required to remedy this situation.
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