There's a programme on tv tonight about rental stock / prices and this is in todays news.
Rent rises put the squeeze on tenants in Adelaide
- YOUR MONEY EDITOR ANTHONY KEANE
- FEBRUARY 17, 2013 10:30PM
RENTING a house in Adelaide today costs almost $40 a week more than it did less than four years ago.
New research has found the average house rent in Adelaide is now $359 a week, but renters may get a reprieve in the next couple of years as lower growth is forecast by real estate experts.SQM Research has examined rents nationally since August 2009 and found Adelaide house rents have climbed 12 per cent, from $320 a week. Rents for units rose from $263 to $275.Adelaide's growth was the fourth-highest in Australia, behind Perth (up 41 per cent), Darwin (28 per cent) and Sydney (16 per cent).SQM managing director Louis Christopher said Adelaide rents had been affected by very low vacancy rates, which were now at 1.7 per cent."Anything under a 3 per cent vacancy rate is generally a landlords' market," he said."It's still a landlords' market but that hasn't always translated into rapidly appreciating rents in Adelaide."Mr Christopher said rental growth across Australia was likely to be lower in the next two years because low interest rates and recent house price weakness would prompt more renters to become buyers.Real estate academic and author Peter Koulizos said Adelaide's rental growth had dried up in the past year, which meant some landlords had to reduce their asking rents."It's the worst I've ever seen,'' he said. "Some of the smarter renters have worked out if they can get a deposit together it's cheaper to buy and pay a mortgage than to rent it.''Australian Bureau of Statistics home loans data showed first home buyers were just 15.8 per cent of loan approvals in November, its lowest level in eight years.Mr Koulizos said he expected more renters to move into the first home market. "I think growth in rents will be relatively slow in the next 12-to-18 months,'' he said.