Sydney’s rental market is hitting new heights of unaffordability as unit and house rents continue to skyrocket, with no end in sight. The latest Domain Rent Report reveals that the median asking rent for units has surged by a record-breaking 24% in the past year alone, reaching a whopping $620 per week in March 2023. Meanwhile, house rents have also soared to an all-time high of $660 per week.

Experts warn that the surging rental demand from both locals and overseas migrants, combined with a severe shortage of available properties, will continue to drive up rents even further. The Reserve Bank Governor, Philip Lowe, has cautioned that rent inflation is likely to stay high for some time, and financial counsellors are already receiving calls from renters in financial stress.

The surge in demand has been so strong that some are likening it to “whiplash.” Westpac senior economist Matthew Hassan notes that households with more financial resources are driving up rents, squeezing middle- to low-income earners even more. And while the new NSW Labor government has proposed measures to alleviate the rental crisis, experts warn that there will be little relief for tenants in the short term.

As one Bondi renter put it, “rents are rising everywhere.” With tenants now resorting to rental bidding, it seems that the situation is set to get much worse before it gets better.