No relief for renters
It appears there will be no relief for renters over the next year, with prices set to remain high, according to housing professionals.
President of the Real Estate Institute of Australia, David Airey said the biggest influence on rents would come from employment figures. With unemployment expected to rise over the next year, the already tight rental market is set to get even tighter.
“Unemployment often drives people into renting. If more people want to rent, there will be fewer properties and so rents will increase – it’s pretty simple,” he said.
Airey also believes that if Australia’s housing shortage gets worse over the next few months, it could severely impact the rental property market, driving more people to rent, increasing demand and thus pushing up rental prices.
However, LJ Hooker national property manager Jan Malmstrom said the market will flatten out in 2010, meaning rents won’t get any higher than they already are.
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The United States rental market has been strong since banks have tightened their lending standards and it has become increasingly difficult to save up enough money to qualify for buying a home. Some larger markets such as San Francisco and New York City have actually seen rental prices decrease as consumers are leaving their jobs due to the economic downturn.