Illawarra rental prices have hit a peak, with $668 the whopping average amount being paid out each week.
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That puts the median rental in the Illawarra at its highest point ever and above the national average rental of $601 per week, according CoreLogic's Rental Market Update for January 2024.
Illawarra rent values went up 1.4 per cent during the past 12 months, which is the equivalent of a $9 increase in the median weekly rent.
The median weekly rental value in the Wollongong area is $692; Dapto-Port Kembla is $629; and Kiama-Shellharbour is $689.
The national median has increased markedly from $437 per week in August 2020, pushing annual rent values up by more than $8000 in that time.
The median rent in Sydney is $745 per week.
CoreLogic's head of research Eliza Owen said the factors weighing on rent growth will be the stretched affordability, weaker economic growth - which will affect employment and income growth - "and already we're hearing more anecdotes about group share houses reforming to cope with high rent costs".
"So these are all demand side factors that will weigh on rents," she said.
"On the supply side there's been a fairly robust recovery in investment activity, particularly in NSW where investment lending makes up about 40 per cent of new housing lending at the moment, so that will help to ease some rental market pressures."
However, there could be some positive signs for Illawarra renters.
Ms Owen said rent growth across the Illawarra could actually start to fall from its peak this year, because annual rent growth across the region has eased so consistently.
"Rent values are rising at just 1.4 per cent annually right now, down from 12.2 per cent in the 2021 calendar year," she said.
"I think it's reasonable the market could move into a downswing."
This report follows the news that the Illawarra has featured prominently in a report showcasing the worst suburbs in NSW for "rental pain".
Tenants in some parts of the region could be spending more than 40 per cent of their household income on rent.
Meanwhile, a University of Wollongong student recently told the Mercury of the difficulties of finding a suitable and affordable rental.
"Most of the places are really expensive and not worth the price, or some people just wouldn't reply to messages," student Shenal Silva said.
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Brendan Crabb
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
