Sydney renters cop brunt of rate rises
06/09/2022
As the nation braces for another interest rate rise, a new analysis shows landlords are passing the cost on, with asking rents in the Sydney basin surging between $20 and $100 per week over the last three months.
In south-western Sydney, rents climbed 9.3% over the last quarter as the historically tight rental market gave landlords more power to pass on interest rate increases to their tenants.
The analysis of SQM rent and rental vacancy rates by Everybody’s Home shows that equated to an eye watering $46 more per week.
South Western Sydney is not isolated, with other Sydney regions posting the following increases:
Sydney
| Community | Vacancy rate | Asking rent | Quarterly increase in weekly rent |
| South Western Sydney | 0.7% | $544.23 | $46 or 9.3% |
| Sutherland Shire | 1.1% | $671.28 | $60 or 9.9% |
| Western Sydney | 1.2% | $520.65 | $47 or 10% |
| Canterbury-Bankstown | 1.1% | $498.74 | $23 or 4.9% |
| Liverpool | 1.3% | $478.66 | $43 or 10.1% |
| Parramatta | 1.3% | $522.24 | $41 or 8.5% |
| St George | 1.3% | $573.96 | $50 or 9.6% |
| Inner West | 1.5% | $606.24 | $36 or 6.4% |
| Northern Beaches | 2% | $934.28 | $66 or 7.6% |
| Eastern Suburbs | 1.8% | $836.27 | $52 or 6.7% |
| The Hills District | 2.2% | $701.10 | $56 or 8.7% |
| Lower North Shore | 2.4% | $859.95 | $107 or 14.3% |
| Upper North Shore | 2.2% | $716.39 | $30 or 7.5% |
| Sydney CBD | 3.1% | $860.81 | $98 or 12.9% |
Everybody’s Home spokesperson, Kate Colvin, said people on low and modest incomes needed more housing choice.
“Renters on modest incomes are bearing the cost of the national inflation challenge. This is both unfair and unwise. We need to urgently expand social and affordable housing.
“It was very welcome to see the Commonwealth Government make $575 million available to social and affordable housing at last week’s job summit. But with rents surging by around $50 per week in just three months, we know that a much greater effort is needed.
“Australia is one of the world’s wealthiest countries. Yet we have women returning to violent homes or facing homelessness, because of our warped housing market. Families with full time breadwinners are living in tents.
“The rental crisis is sending shock waves through the community, with renters hit with massive rent hikes having to cut back on food, petrol and other essentials. This is a social calamity and an economic disaster, with the double whammy of record low vacancies and skyrocketing rents making it impossible to find an alternative, more affordable home.
“We need to start planning for more social and affordable houses now.”
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