Tenants in regional NSW are feeling the pinch of rising
interest rates, with new research naming five regions set to be the worst hit
by the rental crunch.
A new analysis conducted
by Everybody’s Home, the national campaign for real housing solutions, has
found the five regions that will be most impacted by the state’s rental crisis.
These five regions all have vacancy rates below 1 percent, while rents have
experienced 10 to 20 percent increases.
The five regions where renters are experiencing the
financial pressures of interest rates rises are:
Broken Hill and Dubbo: With just 64 of the
15,246 rental properties available to new tenants, these central-west locations
are really feeling the pressure of the rental crisis, with vacancy rates
sitting at 0.42 percent. Rents have undergone an annual increase of 14.5 percent to now be at $390.
The Murray region: Down in the state’s south,
vacancy rates currently reside at 0.43 percent, with 108 available rentals from
a total of 25,282 properties. Rents in this region are currently $365, having
experienced 11.4 percent annual growth.
The Riverina region:A slightly higher vacancy
rate of 0.44 percent in this region compared to the previous two, thanks to
143 of 32,573 eligible properties currently being available to tenants. Weekly
rents, currently at $379, have risen due to 16.5 percent annual growth.
Wollongong: This south-coast location, previously reported as one of the top regional locations Australia-wide
where Millennials were moving to, has a vacancy rate of just over half a percent (0.55 percent). There are 407 available rentals from 32,573 properties,
with the median asking rent sitting at $548, thanks to 18 percent annual
Tamworth: Tenants in Australia’s home of
country music are asking for $358 in weekly rent, a figure that is up 9.9 percent annually. Conditions are tight in this regional town, with 178 of 32,573
rental properties available for leasing leading to vacancy rates presently
rest at 0.58 percent.
Kate Colvin, a spokesperson for Everybody’s Home,
said many landlords would look to recoup the price of rising interests by
passing the cost on to their tenants.
"Renters are in for a seriously difficult time as
landlords capitalise on historically low vacancy rates to shift the rising cost
of interest rates onto their tenants,” she said.
Ms. Colvin admitted that a decade of inaction under
the former federal government had created a "perfect storm” that has left
limited options for many Australians unable to afford properties in their local
"We need to start planning for more social and
affordable housing now. A dip in construction starts is forecast for next year,
and that’s a great opportunity for the government to swing in and take up the slack
in the industry,” she said.
Concluding that "the bitter fruit of a decade of
housing neglect is with us now and is being unfairly forced on low-income
renters. This problem will only get worse if we fail to act.”
Article Source: https://www.realestatebusiness.com.au
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Wednesday, 13 July 2022