This increase in demand has driven unit rents higher. While there remains a gap between house and unit rents, it has narrowed.
Nationally, the gap has dropped from $64 per week to $39 per week, according to new analysis.
“Units are the affordable option for many; new migrants, students, service workers and many other tenant types,” reports Property Update.
“But the increase in demand and low availability is forcing rents to increase increasingly and causing the affordability gap between houses and units to close rapidly.”
Continued demand could tip the balance back towards houses, as buyers seek better value for their rent money.
“As the gap continues to narrow, we could see more rental demand shift towards the housing sector, or as we’re potentially already seeing, flow into additional purchasing demand with some prospective buyers fast-tracking their decision to become homeowners.”
Brisbane rents have grown 16.5% in the 12 months to April 2023. At the same time rental vacancies rates have dropped. And it’s not just Brissie renters feeling the pressure.
Nationally the total advertised rental supply is almost 40% below the five-year average. As rental price pressure remains, Australia’s love affair with units is likely to continue.
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