The rental crisis shows no sign of easing, with vacancy rates falling to their lowest national level since April 2006.
Rental prices in the capital rose 11% in the 12 months to March, while regional areas face 13.1% year-on-year growth.
Data released by buyer agency InvestorKit looked at 300 areas across Australia to find out where rents are likely to rise by $2,600 to $5,200 over the next 12 to 24 months.
That’s up to $100 per week increase.
The 20 regions in the country facing this highest rental growth include Brisbane, Adelaide, Perth, Hobart, Canberra, Devonport, Burnie-Ulverstone, Nerang, Bundaberg, Maryborough, Buderim, Toowoomba, Queanbeyan, Lake Macquarie – East, Kiama-Shellharbour , Wagga Wagga, Barossa, Yorke Peninsula, Warrnambool and Shepparton.
“A rental crisis is often defined by vacancy rates of 1% or less, so it’s concerning to see this continue to worsen,” said InvestorKit founder and head of research Arjun Paliwal.
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“We are currently at 0.7%, which is 41% lower than 12 months ago, when we were at 1.2%.
“Most of the 20 regions chosen in our report have vacancy rates below the national average, and the majority are even below 0.3 percent.”
Paliwal said several factors are contributing to the growing demand for a limited number of properties.
More people were looking for single-family homes due to the work-from-home trend, while rising house prices forced more people to stay longer as renters.
Paliwal also pointed to more millennial Australians moving out of family homes, growing regional populations and a decline in property investor activity.