Rents still rising
Christmas and New Year is an odd time for rental markets, with students departing, tourists arriving, and most Aussies taking a well-deserved break.
Still, over the past quarter there hasn't been much of a noticeable slowdown in asking rents.
Since the lockdowns of early 2020, the median asking rent for a house in Australia has increased from by more than +51 per cent, from $450/week to $680/week, which is obviously a far sharper increase than we've seen for wages.
That's an extra $12,000 per annum which renters have to find from their post-tax dollars.
The median asking rent for units has increased by +43 per cent, from $370/week to $530/week.
Source: SQM Research
For the time being, then, it seems that rents will continue to add to consumer price inflation.
As and when rents do level out, there will be an equivalent significant reduction in spending power for consumers, which will help to push inflation lower later in 2024.
---
UK mortgage approvals leapt to a 5-month high in November at above 50,000 as consumers anticipate interest rate cuts in 2024.
---
P.S. Whenever you’re ready…here are 4 ways I can help you manage your own money and go next level wealth:
- Boom or Bust in 2023 – 20 minute online workshop for investors
Register for my next free online training - Boom or Bust? How to change your investment plan for 2023 - book in here
You also download a free copy of my e-book The Only 6 Ways to Become Wealthy here.
- Subscribe to our Top 10 Podcasts for Investors
Listen in to our podcasts
The Australian Property Podcast is one of Australia's biggest business podcasts.
And our enormously popular Low Rates High Returns Show is also available on Spotify.
- Subscribe for my free daily blog
Subscribe for my free daily blog with over 3.4 million hits here.
You can also catch up with me daily on Twitter here, where I'm active daily and have over 13,300 followers.
- Work with me privately
For a limited time you can book in a free diagnosis call with me here.
