Although the 2010 rental market proved to be tight, it seems that there is no relief in the near future for those looking to rent. With pressure on rental prices likely to continue in 2011 and a decrease in the number of people looking to buy, the current rental market is anticipated to be even tighter than it was last year.
RealestateVIEW.com.au recently conducted its annual Consumers Property Rental Sentiment survey to investigate just how renters are feeling about the market in 2011. The survey found that those consumers in the market who are intending to rent, feel they may need to make even more sacrifices this year than they had to in 2010.
According to survey respondents, the market seems to be slightly more competitive than it was a year ago, with 8.5% more consumers in 2011 feeling that they would have to increase their budget to find a suitable property. These findings come as no surprise as the president of the Real Estate Institute of Australia, David Airey recently confirmed the upward pressure on the rental market would continue in 2011. “In 2011, we will see increasing pressure on demand for rental properties, in particular, in Sydney and Melbourne due to population growth,” said Mr. Airey. “As a result vacancy rates will continue to remain low and we anticipate rental rates will continue to rise.”
As the current market is more difficult for renters than it was a year ago, many consumers have had to re-evaluate their priorities and compromise on their selection criteria.
It seems one of the most significant sacrifices consumers have to make is based on location; 10.6% more consumers in 2011 feel they have to look for a rental property further away from the CBD than originally planned. Whilst an astonishing 31.8% more consumers who had already found a rental property in 2011 were forced to look further out than originally planned. In addition, slightly more consumers (6.6%) in 2011 felt that they would need to consider properties that are smaller in size than originally envisaged.
These sacrifices point to an increase in the lack of affordable rental properties on the market, which is driven by demand, and support the notion that renters are in for a tough ride in 2011.
About the survey
Over 800 consumers took part in the annual realestateVIEW.com.au Consumers Property Rental Sentiment survey in 2011. The 2010 survey was completed by over 900 respondents. The survey contained 24 closed questions and was conducted through surveying renters on realestateVIEW.com.au. For more information about the survey please contact email@example.com