Perth’s average weekly rent has skyrocketed to a six-year high, creating a huge win for landlords as tenants face big increases in a fiercely competitive market.
- Figures show average weekly home rents have risen 21.6% in the past year
- This is the biggest increase in over a decade and more than other cities
- Perth tenants find themselves with few options in crowded rental market
Katie Lean is just one of those affected, with the peak making life difficult for the 38-year-old single mom with three children aged 15 and under.
She rents a four bedroom house in Treeby, a developing suburb more than 12 miles south of Perth, as she works full time at an elementary school and prides herself on always paying her bills on time.
Its landlord has just asked for a rent increase of $ 90 per week, having already increased it by $ 40 when the moratorium on rents was lifted at the end of March of this year.
â€œIt was a shock,â€ she said.
“Increases are happening in Perth, but I think the specific amounts they are increasing just seem incredible, where wages obviously aren’t going up at the same time, making it very difficult for many families.”
Please note that rentals could exceed the peak of 2013
The latest figures released by Domain today show average home rents for the June quarter jumped to $ 450 per week in Perth, from $ 370 at the same time last year.
This equates to a 21.6% increase, making it the biggest increase in over a decade and the fastest growing compared to other cities.
Domain senior research analyst Nicola Powell said the biggest concern of Perth residents was how quickly rentals had increased.
â€œIf we continue to see house rents increasing at the same quarterly growth rate, it could mean that they will exceed the peak in rental prices of mid-2013 by the end of this calendar year,â€ he said. she declared.
Around the same time last year, Perth home and unit rentals were the cheapest in the country, at $ 370 and $ 320, respectively.
But current data on rental prices for homes leaves Perth tied with many other states, including Brisbane, where numbers are at an all-time high.
Dr Powell said while Perth rentals have skyrocketed, prices were higher during the 2013 peak, with an average cost of $ 490 per week.
â€œI think when you compare the median asking rent in Perth versus some of our other capitals it’s on par with some of the other cities, but I think that’s the adjustment from last year,â€ he said. she declared.
â€œPerth is also $ 450, the same as the asking rent in Brisbane, but not a record for Perth.
“So, at the end of the day, that means tenants have less inventory to choose from.”
Dozens of people attend the opening of the house in a crowded market
This is the reality for Ms Lean, who said her search for another property was already a challenge.
“I went to an open house [this week], who was also in Treeby, but [was] a three-by-two, so that would be a much smaller property than the one I’m in now, and there were at least 40 people there looking at the property.
â€œI had heard about the number of people attending property inspections and the popularity of properties or rental properties, but when I saw it I was like, ‘Wow, this is gonna be a lot harder than I don’t think so, even me. anticipated. ‘”
Ms Lean said she was forced to consider other options after trying to negotiate a three-month lease, instead of the standard six or 12-month contract, but turned it down.
She also recently received an email with a notice to vacate the property within 30 days, without being given a reason.
â€œIt was actually issued during the lockdown we were in,â€ she said.
She felt that her only option now might be to fork out the extra money that would bring her rent to $ 550 per week.
“I went back to my property manager and said, ‘Can I sign for an additional six months at the premium rate?
â€œBecause I don’t feel like I have a lot of options and for my kids I’m just going to have to stretch as much as possible to try to stay.
â€œThere are quite a few properties, but they seem to go really fast.
“I might find myself at the end of this month with no specific home to go to and have to leaveâ€¦ obviously that’s a really stressful scenario.”