Australian rents soar to record highs as housing crisis bites

National median rents for Australians have reached record highs, CoreLogic data shows.

The median rent rose to $601 per week in December, or $31,252 a year, and increase of more than $160 since August 2020.

Average rent growths were 9.1 percent over the past three calendar years compared with 2 percent in the 2010s. Sydney recorded the highest median rent at $745 per week, while Hobart was the lowest at $535. Hobart recorded a -3.5 percent drop in median rents. Along with Canberra, which fell -1.9 percent, they were the only markets to experience a decline.

Author of the Rental Market Update and head of research Australia at CoreLogic, Eliza Owen, said factors such as an upswing in migration numbers since 2022 and the overall decline in the average size of households were contributing factors to the rise in prices.

It noted that the reduction in available social housing had placed further pressure on the private rental market, especially at the lower end.

While the figures are alarming to renters, the report noted that the rate of growth has slowed compared with recent years. Last year, rent values rose 8.3 percent, down from 9.6 percent in the year to September 2022. The contrast is even greater in regional areas where rents increased by 4.3 percent last year compared with 13.4 percent in the year to August 2021.

“The easing in rent growth is good news with regard to inflation, but there was a slight pick-up in annual growth once again in the final quarter of 2023,” Ms Owen said in the report. “This ‘re-acceleration’ in rents was most consistent across the capital city house markets, but was also evident in regional rent markets.”

However, she said cost of living pressures were causing some renters to re-think household arrangements.

“As noted in previous quarters, part of the explanation for an uptick in house rent growth may be in part due to households re-grouping into share houses,” Ms Owen said. “Additionally, the premium of house rents over units has narrowed in the past two years, from $63 per week at the median level to $38.

“This ‘catch up’ in unit rents could be making them less appealing, diverting tenants back to houses.”

Curb appeal—the attractiveness of one’s property—is everything when deciding to sell, rent, or simply add value to your home. That’s why Australians spend approximately $1 billion per year on property renovations.

“I am seeing smart investors and homebuyers now actively looking to upgrade, capitalising on opportunities in the market,” said Nunzio Bagnato, consultant at Homebuyers Centre Victoria. “It’s no longer just about looking for a specific price point; buyers are willing to pay extra for quality.”

From strategic renovations to expert upgrades, there are many ways in which you can add value to your property, no matter your budget. Whether you’re a seasoned investor looking to maximise returns, or a savvy homeowner wanting to spruce up your living space, look to these 10 ideas for maximising your home’s aesthetic and appeal…and in the process, add value to your property.

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1). A fresh paint job goes a long way

A fresh coat of paint applied to tired walls, whether on the exterior or interior, can do wonders for your home says interior designer and stylist, Jono Fleming.

“Give your space a makeover with paint to create a fresh and elevated look. This is an accessible tool to introduce colour into your home, which serves to transform the mood and feeling of a space,” he says.

“Colour is an incredibly powerful design tool, however itʼs incredibly important that the end result feels grounded and draws people into the space. I recently refreshed a bedroom in my family’s farmhouse using Fantan and Canyon Cloud from the 2024 Dulux Colour Forecast Muse palette, which has converted the space into a vibrant retreat filled with warmth and new life.”

Besides the obvious — paint acts as a protective barrier against the elements such as rain, UV rays, and moisture — a fresh paint job can immediately add value to your home. If you have some minor imperfections, such as cracks or dents, spend some time on prep before you paint for a better finish and a more durable result. For exteriors, lighter colours are a surefire winner.

“There’s a lot of interest generated from colours; a neutral palette appeals to a broader range of buyers,” says Mr Bagnato.

2). Landscape the garden

A well-kept, manicured garden can add thousands of dollars to the value of your home. If we learned nothing from the pandemic, it’s the value of a private, well-designed outdoor area. Spending time on landscaping your front garden will not only enhance street appeal, but can also increase the functionality providing areas for relaxation, entertaining, and recreational purposes across the site.

A well-designed garden including green space, paved areas, room for entertaining and water features, can also increase your property value by up to 20 percent, according to a study conducted by the University of Western Australia. For smaller areas such as apartments or townhomes, consider seeking help from a gardening specialist who can advise on the best pots, plants and flowers depending on the orientation and soil type of your garden.

3). Your home’s facade says a lot

The very first thing that people will see when looking to purchase their next property is the facade. Even when people are searching online, it’s often the very first image shown on a listing, and one that can make or break a property in a matter of seconds. A visually appealing frontage can set your home apart from neighbours, and can really set the tone for what visitors, future buyers, or investors can expect when they walk through the door.

Patrick Cooney, director of sales at Melbourne-based Milieu Property, agrees that the facade of a home leaves people wanting more.

“The vast majority of people only ever get to see and experience the exterior of a building,” he says. “This is an advertisement for those who walk and drive past. Having amazing architecture and landscaping leaves people wanting to know more.”

4). Who doesn’t love new flooring?

It’s always immediately apparent when a vendor has spent the time and money upgrading their home’s flooring. Besides changing the look and feel of your interiors, investing in high-quality flooring materials, such as sustainable wooden floorboards for common areas such as your living and dining space, and carpet for bedrooms, can immediately increase the perceived value of your home.

One factor to keep in mind is that upgrading your flooring is not only a costly exercise but a disruptive one at that, so careful planning is encouraged.

5). Add that new kitchen

Should homeowners ever consider the need to renovate their homes, the kitchen is often top of the list. However small or large, adding a new kitchen to your home can do a lot for adding value to your home. Why? Recent studies conducted by OnePoll suggest that individuals spend over 1000 hours a year in their kitchen. Whether it’s preparing meals, eating meals, or working from the kitchen bench top, having a kitchen that is accessible, practical but also aesthetically pleasing is every home owner’s dream. Costs vary widely but be aware that there’s not a lot of economy of scale involved. Designing and installing a small kitchen often doesn’t cost significantly less than a larger one.

6). Consider art and furnishings

Another great way to elevate the look and feel of your home—and add value in the process—is through the addition of decorative pieces and furnishings.

“Art, display books and uniquely shaped vessels add interest and are an easy way to introduce colour, achieving a cohesive palette,” Mr Fleming says.

Avoid generic prints and go for something bolder, like vintage advertising posters to add personality to the room. Original art, sourced either directly from the artist, through galleries or at auction is a great way to add a luxe feel to a room. Beyond solid walls, Mr Fleming says window coverings can also benefit from the right dressing.

“Curtains, in particular, are often overlooked as an interior design tool, but theyʼre such an easy way to add colour to your space without it feeling too permanent and can completely change the ambiance or mood within a space.”

7). Upgrade your bathroom

After the kitchen, bathrooms are high on the priority list for buyers. If you’re planning on selling soon, you can make a considerable difference by taking small steps; replacing older sinks and toilets, upgraded hardware and new lighting can instantly transform your bathroom. If you’re planning to stay, or you’re keen to create that ‘wow’ factor for would-be buyers, opting for additions like a double vanity, walk-in shower, bathtub, or simply choosing premium materials such as marble or other natural stone, can all make a significant difference to the value of your home.

If you have more than one bathroom to renovate, consider mixing up materials and fittings while staying with the same colour palette for a cohesive look.

8). Be inventive, add storage

Storage—or the lack thereof—is something all homeowners have to deal with. For many first homebuyers or renters, storage is likely one of those additions worth its weight in gold. So, as a homeowner, adding thoughtful and meaningful storage solutions can go a long way in adding appeal to prospective buyers.

“Smart storage solutions can change one’s home from a nice home to a great home. The majority of people have a plethora of ‘stuff’ and finding a place for these are key,” said Mr Cooney.

“Whether its dropping off your keys and a dog lead in your welcome station by the front door, to having an appliance nook for your coffee machine and toaster, or ensuing you have the basics like adequate bathroom storage that accommodate a hair dryer, these are all incredibly important considerations.”

9). Is your home ‘smart’?

Integrating ‘smart’ technology is something we’re likely to see more homeowners do. While the outlay and time spent in setting up a smart home can deter some, considering things like integrated security systems, sensor blinds, keyless entry systems, smart lighting controlled via your phone, and indoor/outdoor entertainment systems can appeal to tech-savvy buyers (and ultimately increase your property’s value).

“Smart tech for the home can be pushed as far as people are wanting. At Milieu, we generally now include smart locks, smart parcel lockers, energy monitoring and number plate recognition access to basements to our new developments,” said Mr Cooney.

“In our last three projects, we have specified VZug appliances which can also be controlled from the touch of your phone.”

10). Sustainability is key

As we all look to add sustainable measures to our homes for a better, brighter, and greener future, energy efficiency in and around our homes will only become increasingly sought-after among home buyers. This can be done by installing solar panels or energy-efficient windows and doors, installing skylights, opting for appliances that save on power, and increasing ways that save on utility bills, like swapping gas for electric induction stovetops.

“Buyers are highly focused on sustainability and future-proofing their homes,” said Mr. Cooney. “Highly sustainable buildings, with EV provisions are key. People place a premium for sustainability and especially EV charging – the mindset has change from, ‘I may get an electric vehicle’ to ‘when I get an electric vehicle’.”

Adding an EV charging station, should you own a hybrid or electric vehicle, is a great initiative to consider for your home. Not only can an EV charging station power your vehicle, but its power can also be offset to power parts of your home.

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Australian rents soar to record highs as housing crisis bites

The humble share house is back on the table as renters wrestle with rising rental costs