Inflation figures reveal the impact of the COVID-19 pandemic on the rental market, according to the Real Estate Institute of Australia (REIA).
The latest report from the Australian Bureau of Statistics (ABS) showed that the housing consumer price index (CPI) fell 0.2% between the year and the September quarter , under the effect of falling rents.
"Rents fell in most capitals due to persistently weak rental market conditions and high vacancy rates resulting from COVID-19. Rents recorded the first annual decline in history of the series ", indicates the report of the ABS.
Rents fell in all capitals except Canberra, where rents edged up 0.2%.
The largest decline was 0.7% in Darwin and the smallest 0.1% in Brisbane, resulting in a capital-weighted decline of 0.2% for the quarter and a decrease of 1 , 4% for the year.
"Rents fell during the September quarter in most capitals due to persistently weak rental market conditions, with tenants moving to cheaper areas and negotiating lower rents," said Adrian Kelly, President of REIA. "This was the first annual drop in series history when ABS launched the series in September 1973."
Kelly said this could indicate the need for the government to expand its housing assistance programs beyond December of this year.
A recent Rent.com.au survey showed that while 40% of tenants now find it easier to manage their rents, 24% have remained unemployed due to the COVID-19 pandemic. Additionally, the survey showed that only 11% are optimistic about life after the pandemic.
"Many external factors leave tenants with a general feeling of less control than they would like. Factors like unemployment, uncertainty, changing rules on JobKeeper and JobSeeker , and restrictions all play a role, "said Greg Bader, CEO of Rent.com.au.
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