The Upper Hunter town of Denman has seen a nearly 40 per cent rise in the average cost of a rental unit in the past year, according to a new report.
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Denman topped the list of suburbs in regional NSW which saw the biggest increase in rents according to the PropTrack Rental Report June 2022.
The median weekly rent for a unit in Denman is now $350, an increase of 37.25 per cent on the previous year, compared to the overall median of $410 for units in regional NSW. The median weekly rent for houses in regional NSW was $495, with rental prices up 9.5 per cent year-on-year.
It's a similar story across much of regional Australia according to the report, with rental prices increasing by 11.4 per cent year-on-year, compared to 4.4 per cent in the capital cities.
Cameron Kusher, PropTrack director of economic research and the report author, said while competition in the rental market continued to heat up over the second quarter of 2022, there could be some relief for renters in regional areas on the horizon.
"There's already some indication that in certain regional areas, rental pressures are easing, with more stock for rent and properties taking longer to lease," Mr Kusher said.
"This is logical as the impetus to shift regionally has eased as major cities have reopened.
"Some people that moved during the pandemic will now return to the big cities, while others deciding to stay will look to purchase their own home."
But overall, Mr Kusher said the current rental market remained extremely tight, with many people looking for rental properties at a time in which the supply remains insufficient.
"The ultimate solution to the tightness of the rental market is more rental properties," he said.
"Increased investor purchasing is addressing this, but it will take some time to ease the existing pressure."
Mr Kusher said incentives for first-home buyers offered by state and federal governments may encourage some renters to move from renting to home ownership.
"Over time this may ease some of the rental supply pressures, but it is likely to mostly be offset by the return of arrivals from overseas, most of whom seek rental accommodation on arrival," he said.
Across regional NSW, the report found the following suburbs experienced the highest price increase in year to June in the median weekly rent for a unit:
- Denman - 37.25 per cent ($350 median weekly rent)
- Hawks Nest - 37.10 per cent ($425 median weekly rent)
- Tuross Head - 34.62 per cent ($350 median weekly rent)
- Sapphire Beach - 33.33 per cent ($560 median weekly rent)
- Temora - 31.43 per cent ($230 median weekly rent)
- Jindabyne - 30.26 per cent ($495 median weekly rent)
- Birmingham Gardens - 29.86 per cent ($468 median weekly rent)
- Broulee - 29.01 per cent ($523 median weekly rent)
- Culburra Beach - 28.33 per cent ($385 median weekly rent)
- Bogangar - 28.00 per cent ($640 median weekly rent)
For houses, the top suburbs for rental price increases in the year to June in regional NSW were:
- Camden Head - 57.14 per cent ($715 median weekly rent)
- Tathra - 55.88 per cent ($530 median weekly rent)
- Narooma - 55.06 per cent ($690 median weekly rent)
- Crescent Head - 54.44 per cent ($695 median weekly rent)
- Kew - 40.26 per cent ($540 median weekly rent)
- North Haven - 40.00 per cent ($560 median weekly rent)
- Highfields - 39.78 per cent ($650 median weekly rent)
- Mount Pleasant - 39.42 per cent ($725 median weekly rent)
- Cardiff Heights - 39.10 per cent ($543 median weekly rent)
- Malua Bay - 39.00 per cent ($695 median weekly rent)
