Rental inflation hasn't been this low in 25 years! | Home I Own, Aussie Real Estate Blog

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Rental inflation hasn’t been this low in 25 years!

by Greg on February 1, 2018

renting

I am a renter, so reading a headline like this, never mind writing one, feels really good. According to the latest ABS Consumer Price Index release for December 2017 there is a slowdown in rental price increases to just 0.6 per cent in 2017.

This means that out of all housing costs which grew 3.4 per cent over 2017 rents had the least growth – electricity was the main force pushing these costs up.

As for the reason why you should only expect a modest rent increase (if any), HIA Senior Economist Shane Garrett thinks it’s investors we have to thank:

“The slowdown in rental price pressures has been helped by the completion of large volumes of newly-built dwellings over the last couple of years. Investors, both domestic and foreign, have been instrumental in delivering this additional supply.”

But, as we know, the real situation with rents differs from place to place.

Did you get a rent increase in 2017? Leave a comment – let us know.

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