Brighter And some

Rents tipped to drop in 2024… is it true?

by Kate Watt, Marketing Manager 19 October 2023

It’s the headline tenants have been waiting for but will rents really drop in 2024?

Only time will tell, but some signs are pointing in that direction according to a recent media report.

The big factor touted to end rent rises is an end to interest rate rises, and many commentators are suggesting we’ve now hit a plateau on the rate rise rollercoaster.

Another factor is that income growth may slow in 2024, effectively creating a “ceiling” on how high rents can go before tenants choose more affordable housing arrangements, says CoreLogic.

“In the 12 months to June last year, ABS data showed more affordable (Queensland) rental markets like Logan – Beaudesert and Ipswich to have the first and third highest volume of net internal migration across the country,” says CoreLogic’s Eliza Owen in Australian Property Investor magazine.

“This overtook the Gold Coast, which had the highest net internal migration in the previous year.

“Such internal movements could ease demand in the most expensive rental markets, bringing down overall growth in the national rents.”

Amidst all that sophisticated economic commentary, we think perhaps the real headline in the Core Logic analysis could be that more Aussies are now choosing to move to Logan and Ipswich than the Gold Coast.

That’s either a sign that our nation has finally rejected sun burn and schoolies, or the affordability crunch is continuing to bite hard. A turning point may be in sight.

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