The most in-demand suburbs with renters, and where competition has eased
Daniel Butkovich, Property Journalist
First published 19 October 2023, 11:03 AM
Last updated 10 November 2023, 08:48 AM
The latest rental data from realestate.com.au shows that competition remains fierce in many parts of the country, with hundreds of renters enquiring about new properties that hit the market.
But in most Australian suburbs, rental demand has decreased over the past year, with reduced competition easing some of the pressure on prospective tenants looking for a home.
There is, however, a catch. Demand remains high by historical standards, and with vacancies low, rental prices aren't expected to fall any time soon.
Use the interactive below to see rental demand in your suburb.
Tracking key enquiries per rental listing on realestate.com.au – which combines high-intent actions such as emailing an enquiry, calling the agent or downloading documents – shows how in-demand a suburb is with renters.
The data reveals an extreme level of demand in some suburbs, such as Bentley in inner Perth, where there were 160 enquiries per rental listing on average - the most of any suburb nationally.
In Australia’s tightest rental markets, demand from renters vastly exceeds the supply of available rental properties, said PropTrack senior economist Eleanor Creagh.
"With demand running well ahead of supply, suburbs in Perth, Adelaide and Brisbane are the most competitive in the country with the most enquiries per rental listing," she said.
"Of the capital cities, Adelaide and Perth have the lowest vacancy rates in the country, and the lack of available rentals is at critical levels."
Wembley in Perth's inner suburbs has one of the highest levels of rental demand in Australia. This one-bedroom Wembley apartment is on the market for $450 per week. Picture: realestate.com.au/rent
The Perth suburbs of Tuart Hill, Lathlain, Queens Park and Balga rounded out the top five most in-demand rental suburbs across the country, averaging more than 145 enquiries per rental listing.
Renters seeking affordability amid cost of living crisis
Most of the suburbs with the highest rental demand had a median weekly rental price of $500 or less, indicating renters were increasingly seeking more affordable homes.
Ms Creagh said rental affordability had dwindled amid tight rental markets and significant price increases, with asking rents increasing faster than household incomes.
Low vacancies have caused rental prices to rise rapidly over the past year, with median advertised weekly rents up about 12% across the combined capitals in the year to September 2023.
"Those that rent are likely to be spending more of their income on housing, resulting in demand for more affordable rentals remaining higher," Ms Creagh said.
Dandenong and Cranbourne in Melbourne’s outer south east were Victoria’s most in-demand suburbs with renters, with more than 100 enquiries per listing on average.
Ray White Cranbourne leasing consultant Sophie Bridges said the renters were drawn to the suburb’s affordability and its position, which offered open space and good connectivity to the city.
"A lot of people after Covid just want the space to be able to move around," she said.
Properties there were typically leased within three or four days of hitting the market, Ms Bridges said, especially affordable properties offered for less than $500 per week.
This three bedroom Cranbourne house with a large backyard is listed for rent for $550 per week. Picture: realestate.com.au/rent
At the other end of the spectrum, demand is much lower in suburbs in some of the nation’s priciest rental markets, as fewer people can afford the high rents in these areas.
In most suburbs with median rents of more than $1000 per week, such as Barangaroo, Point Piper and Tamarama in Sydney and Dalkeith in Perth, rental demand fell over the past year, and most have fewer than 20 enquiries per listing.
Although enquiries per rental listing demand have fallen by about 40% in Frenchs Forest, the weekly median asking rent is $1100. This three bedroom family home is on the market for $1250 per week.
Meanwhile, well-connected inner suburbs were among those where enquiries per rental listing increased most, particularly in Melbourne.
"The recovery in migration is contributing to heightened levels of rental demand, particularly near city centres, where many migrants tend to reside,” Ms Creagh said.
Rental enquiries have surged in Menora in inner Perth, increasing by 158% over the past year.
Demand has also shot up in Wiley Park in Sydney's inner south west, where the median weekly rental price of $420 makes it one of the most affordable suburbs in the area.
Where rental demand has decreased
Despite extremely low vacancy rates and strong competition, rental demand data does offer a glimmer of hope for tenants.
Demand has actually fallen in more than three quarters of Australian suburbs over the past year, with fewer people competing for each rental property, particularly in regional Australia.
Rental demand decreased in about 85% of Brisbane suburbs, 84% of Adelaide suburbs, 71% of Sydney suburbs, 54% of Perth suburbs, 37% of Melbourne suburbs and 92% of regional suburbs.
Demand fell in every suburb of Tasmania and the ACT, and in all suburbs of the Northern Territory except one, Ludmilla, where demand increased very slightly.
The biggest reduction in demand was in Coalfalls, west of Ipswich in Queensland, where enquiries per listing fell by 77% over the past year.
Many suburbs of the NSW central coast, such as Point Frederick, Niagara Park and Wyoming, had big decreases in rental demand.
"Recently it’s felt like a renters market," said property manager Emma Benterman of McGrath Gosford.
"It really depends on the property. A lot of our family homes get snapped up immediately regardless of where they are."
This two bedroom waterfront apartment at Point Frederick on the NSW Central Coast is advertised for rent for $980 per week. Picture: realestate.com.au/rent
While a reduction in rental demand is great news for tenants seeking a new home, it does need to be put into context, as demand overall remains elevated.
For example, in Gregory Hills in Sydney’s west, rental demand decreased by 41%, but despite that reduction, there were still 48 enquiries on average for every rental property that hit the market.
Ms Creagh said rents would keep rising while vacancy rates remain low, but price pressures may ease in areas where demand is no longer outstripping supply.
Tips for tenants navigating a tough rental market
While renters can potentially face less competition by searching in areas where rental demand has decreased, property managers say getting in early is the key to securing a rental property.
“If you are desperately looking for your family I'd recommend getting to the first open home, and if you think it's going to work for you, get your application in,” Ms Benterman said.
“We’re finding a lot of the time we’re having to chase information up and it does delay things a bit more. That can be the difference between getting a property and not getting a property.”
“I had a popular one the other day, we had eight applications for it but the ones that were really well-suited to the property didn't have the information we needed.”
Ms Bridges said it was critical that tenants properly complete applications and let their references know that they should expect a call.
