Rental crisis in Australia prompts calls to build more homes

Record low numbers of available rental units; rise in rates set to reach 13%, fastest in 14 years

- Jonathan Pearlman

A surge in demand for rental homes in Australia has led to record low numbers of available properties and prompted calls to either open more land for development or impose a nationwide rent freeze.

In the past year, average rental prices have increased by almost 10 per cent to A$526 (S$505) a week, though weekly rents in the city of Canberra were as high as A$690, and Sydney rents were at A$643.

The annual rise in rental rates is the fastest observed in 14 years, and is on track to reach 13 per cent. Queues at rental inspections sometimes snake down city streets, while those searching for houses have described making dozens – and sometimes hundreds – of applications without success.

Ms Alexei Bennett, a Gold Coast resident who lives with her partner and three children, recently described being forced to move with her family into a motel room after having more than 200 rental applications rejected in about three months.

“The competition is crazy at the moment,” she told Channel Nine. “Our previous landlord didn’t want to re-sign our lease due to all the people coming in from interstate, so she ended up asking us to leave and this was the next best thing.”