Sydney unit rents hit record $780 a week as affordability limit nears
Sydney unit rents reached $780 weekly in September, up 4 per cent year-on-year, while vacancy fell to 1.2 per cent.
Sydney unit rents hit a record $780 a week in the September quarter, according to Domain's latest data. While the median held steady over three months, it climbed $30 a week compared to last year.
The problem is supply: the vacancy rate sits at just 1.2 per cent, well below the 3 per cent rate that gives tenants real bargaining power. Dr Nicola Powell, Domain's chief research officer, said renters are reaching "the limits" of what they can afford.
"A low vacancy rate usually triggers rapid rent increases, but that's just not happening right now. It tells us affordability ceilings are being reached," she said.
Leo Patterson Ross from the Tenants' Union said many renters contacting his group are approaching "breaking point" after two years of rises that outpaced wage growth. Some are compromising: moving further away, taking smaller places, or accepting homes with repairs issues.
- $780 per week
- Record unit rent
- $30
- Year-on-year increase
- 1.2 per cent
- Vacancy rate
- 2.9 per cent to $700
- Inner south-west rise
Why it mattersBudget tax changes and expected interest rate rises could trigger landlord exits and reduced rental stock, potentially pushing rents even higher for already-stretched renters.
AustraliaHundreds of thousands of Sydney renters are approaching their spending limit, forcing trade-offs on location, size and condition; policy changes could quickly tip that balance.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
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