Domain’s chief of research and economics, Nicola Powell, said while Australia’s perilous rental market appeared entrenched in a never-ending run of rent rises, she was optimistic a tipping point would be reached in 2024.
“The first quarter of the year usually marks the rental change-over period, and we anticipated it would be one of the most challenging seasons yet due to the already low rental stocks,” she said.
“The current rental conditions show this intensified seasonal trend – a surge in tenant demand against a limited supply.
“This imbalance has consequently fuelled a renewed acceleration in rental price growth.”
Powell said the number of prospective tenants per rental listing was easing, suggesting some pressure has lifted.
“This could be an early indicator of an increase in vacancy rates sometime this year,” she said.
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“Also, international student visa applications have turned a corner and started to fall for the first time in more than two years, population growth is likely to have peaked, and the federal government has introduced a migration strategy that will slow population growth.
“Homeownership is also at the forefront with incentives in place which will help transition some to being owners or fast-track others to a more affordable purchase.”
West Australian pet owners continue to feel the bite of the housing crisis, with a more than 40 per cent jump in surrender requests.
Around 350 pet owners asked to surrender their pets to RSPCA WA in the first three months of the year, compared to 240 at the same time last year – a 44 per cent jump.
More than one-third of all requests over the past 18 months were because pet owners could no longer afford to feed or care for their animals, couldn’t find a pet-friendly rental, or had become homeless.
RSPCA executive manager animal and enforcement operations Hannah Dreaver said seeing the cost-of-living and housing crises contribute so much to surrender requests was disheartening, but not surprising.
“Recent victims are Flossy*, a Jack Russell terrier, and her owner Gordon*,” she said.
Jack Russell terrier Flossy* had to be surrendered to the RSPCA due to Perth’s diabolically low rental vacancy rate.Credit: RSPCA
“Flossy came into our care three weeks ago because Gordon had become homeless and couldn’t access an emergency shelter with a dog.
“As an older man, he had the choice between sleeping rough with 12-year-old Flossy and feeling unsafe for both of them, or having the chance at a bed for the night.”
While cost-of-living and lack of pet-friendly rentals continue to represent a third of all surrender requests, there has been a shift in the data.
Recently, more pet owners are surrendering because they can’t find anywhere to live with their pet, rather than being unable to afford their pet’s care.
*Names changed to protect privacy.