Sydney renters to cop impact of interest rate hike

The latest interest rate hike won’t bode well for Sydney renters in an already tight and unaffordable market, as new analysis highlights the extremely low rental vacancy rate.

National housing campaign Everybody’s Home has analysed the latest SQM Research Weekly Rents Index, finding asking rents in the Sydney basin have increased by $80 to $275 per week over the past year.

Western Sydney tenants are paying $118 extra a week in rent compared to a year ago.

Across Sydney, rents have risen by up to $177 a week over the last three months alone. 

Residential vacancy rates slipped to 1.3% in Sydney overall, with south-western Sydney and Sutherland Shire sitting at a tight 0.8%.

CommunityVacancy rate Oct 22Asking rent Nov 22Rolling quarter change in weekly rentAnnual change in weekly rent
Lower North Shore1.7%$1,037.17$177 or 20.6% $275 or 36%
Eastern Suburbs1.1%$959.75$123 or 14.7%$263 or 37.8%
Sydney CBD3.4%$875.51$15 or 1.7% $218 or 33.2%
Sutherland Shire0.8%$764.60$93 or 13.9%$193 or 33.7%
Upper North Shore2.1%$780.79$62 or 8.7%$180 or 30%
Northern Beaches1.3%$1,024.74$91 or 9.7%$155 or 17.8%
St George1.3%$618.63$46 or 8.1%$150 or 32.1%
Inner West1.3%$656.35$50 or 8.3%$139 or 26.8%
Western Sydney 1.3%$555.92$35 or 6.8%$118 or 27%
Parramatta1.1%$549.91$28 or 5.3%$115 or 26.5%
Canterbury-Bankstown0.8%$546.89$48 or 9.7%$112 or 25.8%
The Hills2%$715.08$8 or 1.2%$96 or 15.5%
South Western Sydney0.8%$558.42$14 or 2.6%$91 or 19.4%
Liverpool 1.3%$496.87$18 or 3.8%$80 or 19.3%

*week ending 4 December 2022 

Everybody’s Home national spokesperson Maiy Azize said renters were absorbing the costs of inflation. 

“Rents have been on the rise well before interest rates climbed, but every rate increase adds more pressure to an overheated and unaffordable housing market.

“Another interest rate hike means renters will be worse off if their landlord passes on an increase. This will deepen housing stress for thousands of people.

“To deal with the rental crisis, the Federal Government must invest in social housing. We’re calling on them to build 25,000 homes a year to end the shortfall, help thousands of people at risk of homelessness, and pull even more out of rental stress. At the same time, we’ll be freeing up lower cost rentals for people who need them.

“Building social housing would be the most powerful way to tackle the rental crisis and give Australians the secure, stable homes they need and deserve. 

“If we don’t act, people will be pushed deeper into housing stress and even homelessness.

“We’re calling on the government to take action and make sure everyone has a place to call home.”

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