RENTS in major cities will rise by 50 per cent over the next four years, a report predicts. Most major cities had seen double-digit percentage rises in house rents over the past year as advertised listings dropped to a five-year low, Australian Property Monitors said in its March quarter rental series.
APM general manager Michael McNamara said rental supply was tight as a drum.
“As Gen Y leaves home and strong migration patterns take effect, our construction sector struggles to keep up the supply of well-located, affordable property to accommodate a growing population of renters,” he said.
Mr McNamara said given the time lag from approval to completion in building construction, the flow-on effects were likely to continue throughout the rest of this decade and beyond.
“This is not good news for renters … we advise renters to lock in their current arrangements for as long as they can,” he said.
He said many would-be homeowners continued to be deterred from buying through high mortgage rates and deteriorating affordability.
Source: News.com.au
