Despite Rent Increases in Australia Over the Last Decade of 11% Inflation Has Been 25% So a Negative of 15%
By ANR Reporter
New exclusive industry research has found that rents have grown at only half the rate of inflation for more than a decade – even after allowing for the past year’s rent increases and the current inflation spikes. The ongoing anti-investor sentiment is set to deepen the rental crisis, too, according to industry experts. The Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA) have joined forces to highlight the financial reality for millions of property investors in the face of sharply rising ownership costs. The research – using the Australian Bureau of Statistics Consumer Price Index from June 2012 to June 2022 – by renowned property academic, Peter Koulizos, found that rents increased by just 11 percent nationally over the decade, but inflation rose by 25.6 percent over the same period – a shortfall of nearly 15 percent.
On an annual basis, rents increased by about one percent per year, versus average inflation increasing by more than two percent each year over the decade.
Mr. Koulizos also analysed results at a capital city level, which found that rents didn’t keep up with inflation in every capital city apart from Hobart over the period.
The analysis also found that the rents in Sydney are at the same level as in 2016, with Melbourne posting rent at the same level as in 2018.