Rental prices have risen more quickly in the years since the GFC than in previous decades as Australians shied away from buying their own homes.
The Housing Industry Association today reported that mortgage lending for owner-occupier house purchases had been at a historic low for the past three years.
Low mortgage lending – combined with an increase in overseas migration and construction slowdown – pushed rental vacancy rates to a low, driving rental inflation rates up, the HIA reported.
Economic uncertainty and more restrictive taxation (including negative gearing) policies may also have pushed potential homebuyers away from the market, with unemployment expectations dampening consumer sentiment.
From the HIA report:
“There has probably been a significant increase in the proportion of households renting their home compared with the pre-GFC era,” the HIA reported.
“Rental inflation has decelerated significantly since the spike during the early days of the GFC … [but] has been much higher than over the last two decades.
“This reflects to some degree the pressures created by large numbers of households being shut out of the home purchase market due to financing constraints.”
There’s more in the HIA report.
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