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New data points to an alarming escalation in the cost of keeping a roof over your head, especially for renters.
"The country is experiencing the longest stretch of continuous rental price growth on record as house rents rise for the eighth consecutive quarter and unit rents for the seventh," real estate website Domain said in its quarterly rent report.
The lift in prices has produced record rental prices across the nation.
House rents at record highs across all capitals
According to the report, house rents are at a record high across all capital cities, and unit rents are at a record high across all capital cities except Canberra and Darwin.
"For the first time since 2009, all capital cities have record house rents, highlighting the rental crisis the country is currently going through," Domain's Chief of Research and Economics, Nicola Powell said.
Domain's data shows house rents surged by $135 a week over the March quarter, and unit rents rose by $140 across the combined capital cities since the pandemic low.
And there appears to be no let-up in sight for renters.
The Domain Rent Report notes units are seeing a solid acceleration in rental growth, particularly in Sydney and Melbourne, with Sydney unit rentals breaking into the $600 territory for the first time.
Earlier this week, CoreLogic reported Sydney's median weekly rental price had reached $699.
The report points to evidence rental supply has begun to lift, citing a marginally higher vacancy rate across the combined capitals, up from last month's record low of 0.8 per cent.
Although, CoreLogic's data shows Greater Melbourne's rental vacancy rate has fallen to 0.7 per cent for March.
What's driving rental prices up?
Domain's report points at increased levels of migration for the record rental prices.
"The return of international travel in 2021 and 2022 saw Australia's net overseas migration gain hit almost 304,000 new people in the 12 months to September 2022, providing a significant boost of population gain for Australia," Ms Powell said.
"The proportion of overseas migrant arrivals that were temporary visa holders is now sitting at 61 per cent — a substantial driver of rental demand."
The National Housing Finance and Investment Corporation's latest report also noted the upwards pressure higher levels of migration are putting on rental prices, especially without a corresponding lift in the supply of properties.
The report warned of a shortfall of 106,000 new dwellings by 2027, and 79,000 homes over the next decade.
Analysts say this chronic housing shortage will mean the price of existing homes will remain steady – or rise.
"With the opening of the borders, the massive increase in migration, we're seeing a rather large rise in underlying demand for real estate and that's been playing out in the rental market," SQM Research managing director Louis Christopher told The Drum.
"One hundred per cent, we've got a rental crisis."
In Sydney, rents in several outer suburbs increased more than 30 per cent from early 2020 to January 2023, and more than three times that of some inner city areas.
It'll get worse before it gets better
The expectation now is that, without significant policy intervention, Australia's housing crisis is set to worsen.
Reserve Bank Governor Philip Lowe told a gathering in Sydney yesterday that the onus was on local, state and federal governments to act to prevent a worsening of Australia's housing affordability crisis.
"It comes down to zoning and planning and the cost of developing new subdivisions," Mr Lowe said.
"So that's a really important issue for a country that has very large swings in its population growth.
"We need to be able to have the supply side of the housing market respond quickly when population growth changes, and if we can't do that then we'll have big movements in rents and housing prices.
"I'm not going to kind of express views on the government policy, but I just know it's a really important issue for us to resolve."
The rental crisis may see homelessness rise
There are concerns homelessness will rise if Australia's housing crisis is not addressed soon.
"We're starting to see anecdotal evidence, is that it's going to play out pretty badly on the poor," Louis Christopher said.
"We are going to see a rise in homelessness, and that's concerning. … That represents deep social issues if this continues."
The Australian Council of Social Service (ACOSS) is equally concerned.
"The ACOSS survey showed 93 per cent of those renting privately relying on income support are in rental stress due to the soaring cost of living," the organisation's CEO Cassandra Goldie said.
"More and more people are being forced into homelessness and living in cars or tents because rents are too expensive and there is insufficient social housing available.
"This is in addition to already being forced to make appalling choices between food and medicine in one of the world's wealthiest nations."