Homes with the five bedrooms or more have seen average rental growth nearing 10%, according to the industry researcher, CoreLogic.
Its finding indicates some renters are starting to pool their resources, or they’re willing to live in homes with total strangers.
CoreLogic reports that rental growth for homes of five-bedrooms or more have risen 8.7%, while rents for apartments have fallen from a record high of 16.8% for the year to April 2023 to 7.1%.
The national median weekly rent values hit a fresh record high of $634 per week in June, up $48 relative to a year ago.
For investors, it’s interesting to note that this trend is being led by Queensland, NSW and metro Melbourne.
Apartment rents are still rising vigorously in Adelaide and Perth. However, CoreLogic speculates that these two cities may catch up with the East soon.
The demand for larger houses could be due to either renter behaviour or multiple-generation families either wanting to move in together, or being forced to do so by economic circumstance.
CoreLogic also said in its analysis:
- For houses, rents increased 8.4% nationally in the year to June. This ranged from a 7.6% hike in houses with up to two bedrooms, to 8.7% in larger houses with five bedrooms or more.
- For strata titled properties – townhouses and apartments – the slow down was more severe.
- One-bedroom units and studios slowed from 16.8% in the year to April 2023 to 7.1% in the 12 months to June.
- The brakes have been on for two-bedroom units, too. Annual rent growth was 7.9% over the past 12 months, compared with 15.4% in the year to May 2023.