Perth tenants tipped to be hit with the nation’s sharpest rent increase in 2024

Conditions are about to get a whole lot tougher for Perth’s embattled tenants, with experts predicting rental costs will rise by as much as 9.5 per cent next year. A new Finder analysis has forecast Perth will have the nation’s sharpest increase in rents, pushing rental affordability further out of reach for the average family. Based on a 9.5 per cent increase tipped for Perth by the end of 2024, the analysis found tenants will need an average minimum income of just over $108,000 to afford a median priced rental home in Perth, or almost $95,000 to afford a unit. The figures, which factor in a rental ratio of 30 per cent of pre-taxed income, will be a major blow to tenants who have already seen median rents hit a record-breaking $600 per week this year. Finder head of consumer research Graham Cooke told The West Australian Perth’s chronically low vacancies coupled with increased demand had led economists to tip Perth as the city to have the highest rent increase next year. “Perth has a very low vacancy rate of 0.7 per cent, combined with a robust WA economy encouraging interstate and international migration for jobs and education,” he said. Panellists expect rental prices to continue to increase throughout Australia by the end of next year. Hobart is expected to see the smallest jump in price, with the panel predicting an average increase of 3 per cent. “Finder’s Consumer Sentiment Tracker shows 42 per cent of renters are currently struggling to pay their rent, which is higher than the 37 per cent of mortgage holders in the same position,” Mr Cooke said. “Much of the conversation around rate rises focuses on homeowners, but it’s actually renters who are proportionally feeling the impact more, as they deal with flow-on rent increases. “Further rent increases won’t be welcome news for those struggling.” Despite being the second most affordable capital city to buy a home, Perth will become the third most expensive city to rent based on a 9.5 per cent increase, with renters requiring the third largest average minimum income to rent a home or unit. “For prospective tenants, my advice in a competitive market is to make yourself the easiest tenant to rent to. After the viewing, if you really want a place - get all the documentation together and deliver it by hand to the rental office the very next morning,” Mr Cooke recommended. “If anything, over-provide documentation. You want to make the stamp of approval on your application the easiest decision to make from the perspective of the agent or landlord.” Forecasted rental price increase by end of 2024 and minimum house income required to rent a home Perth 9.5% $108,231 Melbourne 6.8% $92,548 Sydney 6.5% $127,339 Brisbane 6.5% 106,183 Darwin 5.5% $117,035 Adelaide 5% $94,640 Hobart 3% $98,193 Source: Finder