by Sanjeev Sah | Apr 04, 2023 | Market Updates

The reason rents have been rising so strongly over the past 18 months has been due to a shortage of rental accommodation. 

When supply is low, demand is high, which pushes up prices – or, in this case, rents. 

So it’s notable that the Housing Industry Association’s monthly survey of Australia’s biggest home building companies has found that new home sales remain at a low ebb. 

Although sales in the month of February were 14.3% higher than the month before (see graph), sales in the February quarter were 46.8% lower than the year before. 

Unless the supply of new homes increases, Australia will continue to face a housing shortage. And that means rents are likely to continue rising.