Five Central Coast suburbs have made a list of the 20 rental markets in NSW where rents are likely to increase over the next quarter in a newly released report.
The quarterly Hood Tenant Report identifies the top 20 suburbs in the state where landlords hold a clear balance of power over tenants and where that power has increased over the past year.
Coast suburbs to feature in the latest report were North Avoca at number 4, Copacabana at number 8, Erina at number 9, Tascott at number 11 and Lisarow at number 14.
The list is compiled by analysing rents and vacancy rates for every suburb in NSW during a 12-month period.
In all the suburbs on the top 20 ranking, rents have increased by at least 22 per cent during the past 12 months.
In most of the suburbs, vacancy rates are under 1 per cent and in some cases 0 per cent, including North Avoca, Copacabana and Lisarow.
At Erina the vacancy rate is 0.6 per cent and at Tascott 1.2 per cent.
Rental properties are regarded as “officially” vacant when they have been on the market for 21 days or more.
When a suburb has a vacancy rate of 0 per cent, it means all rental properties are being filled in fewer than 21 days of being listed for rent.
The report says rents rose by the following amounts in Coast suburbs between January 2021 and January 2022: North Avoca $615-$820 (33.3 per cent); Copacabana $600-$780 (30 per cent); Erina $440-$570 (29.5 per cent); Tascott $480-$610 (27.1 per cent); and Lisarow $520-$650 (25 per cent).
Hood founder and CEO, Tommy Fraser, said one big reason why rents are likely to increase in the top 20 suburbs is that demand is so high.
“Ever since the pandemic started, people have taken a greater interest in where they live, both in terms of the location and the type of property,” he said.
“That’s reflected in moving data.
“If more tenants want to live in an area, that leads to increased demand for rental properties, which puts upward pressure on rental rates.
“That’s why landlords are likely to increase rents in these 20 suburbs at the next rental review.”
The research began by considering every suburb in NSW, before filtering many of them out.
To make sure every suburb had a legitimate rental market, suburbs were excluded if they had fewer than 500 total properties or rental properties made up less than 10 per cent of total housing stock.
To make sure every suburb had a tight rental market, suburbs were excluded if their vacancy rate was higher than 1.5 per cent.
To make sure every suburb had a tightening rental market, suburbs were excluded if their vacancy rate had increased during the past year or their median weekly rent had not increased by at least $50 in their suburb during the past year and by at least 10 per cent in their SA3 (a statistical area of suburbs as defined by the Australian Bureau of Statistics) during the past year.
Suburbs were then ranked based on the highest change in suburban rental rates (by percentage) during the previous 12 months.
Source:
Hood Tenant Report
February, 2022
What beats me is that landlords increase the rates without doing anything to improve/repair current conditions of their units – or is it just my landlord?? It’s an absolute disgrace “the market” allows them to squeeze the last pennies out of tennants and government does nothing to help resolve housing crisis, except for handing out “dine/discover” vouchers.