New data shows a huge shift in preferences away from the coast to Sydney’s mid- and suburbs. This is why renters are making the switch.
Lifestyle has given way to affordability as Sydney renters move out of the beachfront suburbs in favor of cheaper rent.
Data from Realestate.com.au shows a huge shift in demand away from the outer coastal areas to the suburbs where the average home rent was less than $1,000 per week for the past year.
While the mid-suburbs, where the average house rent was between $650 and $850 per week, were valued by renters, places like Clovelly, Blue Bay and Palm Beach had half the demand compared to the previous 12 months.
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This followed strong rental growth in coastal and peripheral regions throughout much of the pandemic.
In Sydney’s north, Macquarie Park had the strongest percentage increase in the number of tenants per home on the list, a measure that indicates demand. This increased by 256 percent from 10 to 35 tenants per advertisement (RPL).
In the south, Kareela had the most tenants per house, at 101. This was 128 percent more than the year before.
While Clovelly in the eastern suburbs had 61 tenants per home in the previous year, demand had more than halved to RPL 26 in the past 12 months.
Blue Bay on the Central Coast also saw a major decline in housing demand, down 46 percent from 74 to 39 RPL.
PropTrack executive manager of economic research, Cameron Kusher, said rising rents in tight lifestyle markets had pushed many people to look elsewhere as life returned to normal before Covid.
“It means a change,” Kusher said.
“There were a lot of people moving to coastal areas to rent, but that’s starting to pull back.”
“It’s a pretty clear trend that lifestyle areas aren’t as strong as they were a year ago.”
He said regional areas further from Sydney had also experienced a decline in demand – a trend he said would put some pressure on rising rents.
“You’ll still see fairly strong rental demand in the regional markets, but it won’t be as strong as it has been in years past,” he said.
“But looking at the capitals, we expect further rental pressures.”
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Originally published as Renters Preferring Affordability Over Lifestyle