Renters looking to outer suburbs for affordable living

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Renters around Australia are turning away from the inner city to more affordable outer suburbs, new data shows.

The most in-demand rental suburbs for houses and units in each state are not located close to a CBD, and have lower median rental prices, according to data from realestate.com.au.

Renters are looking to outer suburbs, like Belgrave in Melbourne, in greater numbers for more affordable rent. Picture:realestate.com.au

Renters are now looking to neighbourhoods with good transport or freeway links to commute to the city for work.

The findings don’t surprise Kul Singh, REA Group executive manager – rent, who says many people are struggling to pay rent and save to buy their own home.

“Some people are being priced out of the city, they’re having to move further out. So they look for markets where there is public transport so they can catch the train into work or whatever it might be,” Singh says.

“When I say priced out, most of the renters we survey still want to buy a home. So they’re trying to juggle paying the rent and saving for a deposit. If they need to move further out to continue to save, that’s the choice they make,” he says.

Are you living in an in-demand rental suburb? Try our interactive to find out:

More affordable rent

So where do renters really want to live? In outer suburbs where the prices are more affordable, according to demand data from realestate.com.au.

Demand for each suburb is calculated by the number of property views per suburb on realestate.com.au over the past six months, against the average numbers of listings.

Here’s a look at the most sought-after rental suburbs for houses and units in each state.

Australian Capital Territory: Florey & Scullin

This house in Florey is currently on the rental market for $460 per week. Picture: realestate.com.au

Florey is the most in-demand suburb in the ACT for renters looking for a house. This area is around 18kms from the CBD and the median rent for a house is $480 per week.

ACT renters looking for a unit are focused on Scullin, which is just under 20kms from the CBD and where the median rental price is $390 per week.

New South Wales: Tacoma & Bangalow

This unit in Bangalow is currently on the rental market for $420 per week. Picture: realestate.com.au

Bangalow is the most sought-after suburbs for NSW unit renters.

While it is located some 750kms from Sydney’s CBD, it is just 20kms from celebrity hotspot Byron Bay and a more affordable option for those looking for a coastal lifestyle on a budget.

For those looking for a house, Tacoma is the most in-demand rental suburb with a median price of $435 per week. This central coast suburb is located near the beach and is within commuting distance of both Newcastle and Sydney via the express train to Gosford which takes around 90 minutes.

Northern Territory: Ludmilla & Araluen

Araluen is the most in-demand suburb for unit renters in the Northern Territory.  This area is located within 10kms of Alice Springs and has a median price of $445 per week.

This house in Ludmilla is currently on the rental market for $560 per week. Picture: realestate.com.au

Ludmilla is the most in-demand suburb for renters seeking a house.  This neighbourhood is 8kms from Darwin’s CBD and the median rent price is $550 per week.

Queensland: Palm Beach & Bilinga

Bilinga is the most sought-after suburb for renters of units in Queensland. This area is about 26kms from the Gold Coast and the median rent price is $463 a week.

This two-bedroom home in Palm Beach is currently on the rental market for $450 per week. Picture: realestate.com.au

For those Queensland renters seeking a house, Palm Beach is the most in-demand area as the median rent price is $460 per week.

Much like Bilinga, Palm Beach is located within commuting distance of the Gold Coast.

South Australia: Edwardstown & Andrews Farm

The three-bedroom Edwardstown home is currently on the rental market for $390 per week. Picture: realestate.com.au

Edwardstown is the most in-demand suburb for house renters in South Australia.  Located 8kms from the CBD, the median rent price is $378 per week.

For units in South Australia, Andrews Farm is located more than 35kms from Adelaide and the median unit rent price is an affordable $223 per week.

Tasmania: Warrane & Moonah

This three bedroom Warrane house is currently on the rental market for $400 per week. Picture: realestate.com.au

Warrane is Tasmania’s most in-demand suburb for houses.  The area is located less than 10kms from Hobart and the median rent is $380 per week.

For units, Moonah is the most sought-after ‘burb with the median price at an affordable $250 per week.

Victoria: Belgrave & Marshall

This Belgrave house is the only house in that area listed for rent on realestate.com.au right now. Picture: realestate.com.au

Located in Melbourne’s outer suburbs with good transport links, Belgrave is the most sought-after suburb for house renters in Victoria. The median rent is $448 per week.

For units, Marshall which is within commuting distance of Melbourne and close to Geelong, is the most in-demand area for unit renters. The median rent is $340 per week.

 

Western Australia: Padbury & Landsdale

This Padbury home is currently on the rental market for $360 per week. Picture: realestate.com.au

Padbury is the most sought-after rental suburb for houses in Western Australia. The area is located over 20kms from Perth and the median weekly rent is $380 per week.

For units, Landsdale is the most in-demand area with renters. It is also located around 20kms from Perth and the median rent is $340 per week.

Where to get a better deal

The good news for renters is that they may not have to move to the outer suburbs to pay less rent.

There’s been a dramatic increase in the supply of rental properties in some rental markets which means renters may be in a position to get a better deal.

Rental tip 1: Ask for a more competitive rent price

Research the current going rate for rental properties like yours on realestate.com.au.  If you see a lot of listings with a lower price tag, talk to your property manager.

“If you’re going on realestate.com.au and you’re seeing rental prices lower than what you signed up for in your 12-month lease, the first thing I’d do is have an open conversation with your property manager,” says Singh.

“You do routine inspections all the time and it’s a good time to come informed and say ‘Here’s what I noticed in the market. We feel like we’re paying more than we should be, is there any way to negotiate a drop in rent?’ or look for alternatives in other suburbs.  But be open with your property manager about it,” he says.

Rental tip 2: Consider a long-term lease

Some landlords and property managers would prefer to keep good tenants for longer than the standard 12-month lease, which is an option particularly for Victorians following recent changes to rental laws.

Singh says renters could also offer to stay for a set period – say three to five years- and negotiate a hold on the price or a lower rate based on the duration of the tenancy.

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