Unit prices rising for renters

Rental prices for unit accommodation rose 1.1 per cent in the September quarter according to new figures from Australian Property Monitors (APM).

The apartment rental market continues to prove strong for investors, but residents are losing out as median asking rents for units are approaching parity with those of stand-alone homes.

Doctor Andrew Wilson, senior economist at APM says: "The median weekly asking rentals for units is now fast approaching that of houses in many capital cities, as the overall demand for units for both lifestyle and affordability reasons continues to be greater than the demand for more expensive and generally outer-suburban houses."

Wilson believes the rise in prices could have a direct correlation to potential homebuyers putting off purchasing a property in favour of entering the rental market.

This could be due to a number of factors - including economic uncertainty, a lack of interest rate cuts and less competitive home loan products on offer.

As a result, rent prices are going up and families are having to find the extra money, alongside other rises in electricity prices, communication expenses and fuel.

Renters struggling with jumps in expenditure may wish to contact a switching service that could save them money by finding a cheaper rate for electricity and gas.

Posted by Charlie Moore