In 2018, rents fell in Sydney for the first time in nearly 12 years, according to new data from the Housing Industry Association (HIA).
The industry group reported that an unprecedented volume of new homes (especially apartments) had been available since 2014. By and large, five years of supply became available in just four years. As a result, the unmet demand is now taken into account and the affordability has improved.
"This is a significant reversal of the trend. From December 2006 to June 2015, the pace of rising rents has exceeded inflation every year, resulting in a doubling of rents over this decade, "said HIA Executive Director, NSW David Bare.
The trend will continue, however, if close to 50,000 homes enter the Sydney market each year.
"Rental prices increase when the supply of rental housing is insufficient to meet the demand. HIA has long argued that the solution to this problem is to increase the number of new homes. To achieve this, the supply of new housing must be more coherent and the NSW government must make every effort to reduce the cost of punitive housing taxes. " said Bare.
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