by Sanjeev Sah | May 21, 2024 | Market Updates

Recent Australian Bureau of Statistics data shows that annual rental inflation jumped 7.8% in the March 2024 quarter, the sharpest increase in 15 years. 

By contrast, the general inflation rate fell to 3.6%, its lowest point since late 2021.  

Master Builders Australia chief executive Denita Wawn said the surge in rental costs follows the worst year in over a decade for new home-building starts.  

“Higher density home building starts sank to a 12-year low during 2023 which is only driving rental inflation further,” she said.  

“To boost housing supply, we have to make it more attractive to build that means not removing tax incentives like negative gearing or CGT, and reducing the time and cost of building.”