Rental costs in Australia are going backwards

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If you’re in the market to rent, here’s some excellent news. For the first time in at least two decades Australian capital city rental rates have fallen compared to a year earlier.

According to the latest CoreLogic RP Data rental review, released today, capital city rents fell by 0.2% in the year to March, leaving the national average at $486 per week.

Housing rents averaged at $489, ahead of units at $469. In percentage terms, house rents fell by 0.5% over the past 12 months, but unit rents continued to climb, up by 1.5%.

With more houses being rented in Australia than units, the index is weighted towards housing rents, hence the small annual fall recorded.

“We have been tracking the annual change in capital city rents since 1996 and this is the first time we have seen rental rates falling,” said Cameron Kusher, research analyst at CoreLogic RP Data.