Rapid Population Growth and Dwindling Vacancies Increase Struggles for Aussie Renters

In the face of skyrocketing population growth and a tight rental market, Aussie renters are being pushed to their limits and beyond. New research shows that as vacancies dwindle, renters are resorting to desperate measures to secure a place to live (Casey, 2023). Simultaneously, Australia is witnessing unprecedented population growth, setting new records and adding more pressure to an already strained property market (Matusik, 2023).

Brendan Casey, in his article, “It’s who you know: Struggling renters forced to turn to friends and family as vacancies dwindle,” outlines the stark reality facing many renters in Australia today. The research by Finder revealed that almost a third of struggling renters turn to friends and family members to secure housing. About 16% of the surveyed tenants found they have rented a property owned by a friend or family member due to limited vacancies (Casey, 2023).

Michael Matusik, in his article “Rapid population growth set to transform property market,” expands on this situation by detailing how current population growth is creating a surge in demand for housing. The annual population growth rate over the next decade is projected to outpace that of the previous decade, with a predicted increase from 391,500 to 487,000 annually between 2023 and 2033 (Matusik, 2023).

Sarah Megginson, a Money expert at Finder, commented on the rental crisis, stating, “It’s becoming increasingly difficult to find a tenancy – renters are having to exploit any advantage they can.” She added, “Some people are having to sleep in their cars or tents because of how hard it is” (Casey, 2023).

With the PropTrack Market Insight Report showing the national rental vacancy rate dropping to 1.5% in March 2023, the struggle to find affordable rental property becomes even more challenging (Casey, 2023). This is further exacerbated by the ongoing population growth, primarily in capital cities such as Sydney, Melbourne, Brisbane, and Perth (Matusik, 2023).

The population growth has led to some interesting developments, such as Melbourne overtaking Sydney as the most populous city in Australia, after Melton, in the city’s north-west fringe, was included in Melbourne’s population count (Matusik, 2023).

In light of the escalating rental crisis and population boom, experts are calling for urgent changes to the rental market. Renters, however, continue to face uphill battles, particularly those contesting rate rises. A Sydney woman who became the face of Australia’s housing crisis recently recounted the “interesting” outcome she experienced after challenging a hefty $1400-per-month rent increase (Casey, 2023).

As the property market in Australia continues to transform due to rapid population growth and dwindling rental vacancies, struggling renters are caught in the crossfire. Megginson pointed out that there are still ‘a few tricks’ that struggling renters could use to get priority in the rental market, such as leveraging their networks for potential rental opportunities and providing comprehensive information to landlords to facilitate their application approval process (Casey, 2023).

Meanwhile, as Matusik eloquently concluded: “Like it or not, a bigger Australia here we come!” (2023). Amid these sweeping changes, policymakers and the wider society must grapple with ways to ensure everyone can find a place to call home.

References:

Casey, B. It’s who you know: Struggling renters forced to turn to friends and family as vacancies dwindle https://www.realestate.com.au/news/its-who-you-know-struggling-renters-forced-to-turn-to-friends-and-family-as-vacancies-dwindle/ 

Matusik, M. Rapid population growth set to transform property market https://www.apimagazine.com.au/news/article/rapid-population-growth-set-to-transform-property-market