Get this – In 1990, Aussies used to pay (on average) around $125 a week for rent.
Soooooo unfair right?
Scoring a rental for that price in Perth today would probably get you a carboard box and not much more. Just goes to show that the multi-coloured flared pants, mood rings, overalls with the straps down, frosty blonde tips and CD Walkman’s aren’t the only thing we miss about that era (where too many boybands and butterfly hairclips everywhere were not bad things).
Just like Guy Sebastian’s early 2000’s afro, affordable rent sooo didn’t last long.
The folks over at REIWA say the proportion of family income needed to pay rent in WA increased to 20.4 per cent (during the March 2022 quarter). Booooooo, not cool. As if paying bill after bill wasn’t hard enough (thank God for mum’s Netflix and Disney+ passwords) this isn’t exactly what we call ‘welcome’ news for renters in 2022.
So, how exactly is it affecting renters across WA? And how much has rent actually increased?
Houses
Perth’s rental front is giving us the ick. Consider this – in the March 2021 quarter, you would’ve forked out around $430 a week for your cosy rental. Fast forward to the September 2021 quarter, and that average went up a whopping 4.65% to $450. No. Just no.
March 2022 didn’t fare much better *insert warning for potentially distressing content here* – the median rental price in Perth zoomed even higher to $480. That number represents an increase of just over 11% since March 2021. Insaaaaaaaaane.
Units
Remember when petrol used to be 89c? Yeah, feels like a dream – one that was too good to be true, so it probs never happened. Perth’s average rent for a unit isn’t much better folks *we swear we’re not trying to be negative, just presenting the facts yo. *
In the June 2020 quarter, the average rent you would’ve paid for a unit in Perth was $335. The March 2022 quarter saw that number escalate a whopping 25% to $420.
Heck no. Just no.
What does this mean for you?
If you’re currently renting, there’s a high chance the amount you’re paying could increase – and it could be sooner than you think. Sooooo unfair, right? No one should have to deal with the stress of impending rent increases.
Just last year, REIWA revealed there were over 100 Perth suburbs where it was cheaper to own a home than rent one.
Armadale, for example, has an estimated weekly mortgage cost of around $223; while renting in the suburb would set you back around $320 a week. Nestled in the City of Swan, Bullsbrook’s median weekly house rent price is $470; while owning a home there would only set you back about $319 a week. Go figure.
Our Take
Sooooo if you’re super keen to ditch that ‘Karen’ landlord (Seriously, could they be any more intrusive?!), bid sayonara to the painful rental market and get a leg up on the property ladder, owning your first home can not only give you all the freedom – but save you a bunch of money in the long run.
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