Rental listings are in decline

Rental trends

One of the more contentious issues in the housing market at the moment: will the Budget tax changes make the rental shortage worse or not?

Domain reported a huge leap in Sydney and Darwin rents in the June quarter, but that's only one data point. 

Cotality also reported last week that rents increased by 1.6 per cent in the June quarter, to be 41 per cent higher over the past five years. 

Listings in Sydney and Darwin were particularly tight, at about 25 per cent below their half-decade average.

Although that's an acceleration, to be fair this largely relates to pre-existing and pre-Budget trends.

Nerida Conisbee at Ray White put together an interesting chart on LinkedIn which shows how rental property listings have been falling in Sydney for around the past five years. 

Nerida uses rolling 12-month figures as the rental market is seasonal, and reports that the number of active rental listings has reached a 9-year low in Sydney:

Source: Nerida Conisbee, Ray White

You can see Nerida's full post here, where she argues that rental markets will tighten over the year ahead. 

It seems to me that rental markets tend to take quite a long time to reflect such directional changes in full, and it will be most likely 12 to 24 months before we really know the answers. 

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