Sydney’s rental prices have surged significantly over the past year, reaching a new peak of $700 per week. Despite signs of easing rental crises in other parts of Australia, experts suggest Sydney is not experiencing similar relief. According to the latest PropTrack Market Insight Report, sustained demand and limited housing supply have driven Sydney’s median advertised rents up by 16.7% in 2023, solidifying its position as the country’s most expensive city.

In the December 2023 quarter alone, median rents rose by 1.4% to $700 per week. Both house and unit rents have seen substantial increases, with house rents up by 13.6% to an average of $750 per week and unit rents rising by 17.2% to $680 per week over the past year.

PropTrack’s senior economist Angus predicts a continuation of this trend into the new year: “We are seeing strong double-digit rent growth across both houses and units in Sydney, driven by limited rental availability, with vacancy rates remaining below 1.5% in December.”

While house rents accelerated more in 2023 compared to 2022, unit rental growth has slightly moderated. Sydney’s rental market contrasts with national trends, where rental price increases are showing signs of slowing down in many areas but not in Sydney.

The rental market is gearing up for its busiest season, heightening both rental availability and competition. Conversely, regional NSW has observed stable conditions, with house and unit rents holding steady at $520 per week over the last quarter.

There’s some relief on the horizon for tenants as rental price growth is expected to decelerate compared to the previous year, yet this ongoing pressure may still strain household budgets, potentially prompting increased demand for shared accommodations or leading younger individuals to move back in with their parents.