00:00Even in one of Australia's most affordable cities, renters are finding it tough to find a home.
00:08So I've been forced to look into cheaper and cheaper, smaller and smaller apartments.
00:13I mean you enter this one and it kind of just finishes.
00:16It's pretty competitive. I think there's quite a lot on offer.
00:19I think it just really makes you question how much you value space.
00:25Rents grew by just 0.4% in the three months to December and 4.8% over last year after surging 8.1% in 2023.
00:36Sydney is still the most expensive place to live, followed by Perth, Canberra and Brisbane,
00:42while Hobart is Australia's most affordable city to rent.
00:46It's the smallest December quarter rent growth since 2018.
00:50In other words, we're getting back to pre-COVID levels of rent increases.
00:55The slowdown is due to lower overseas migration and prices outstripping what tenants can manage.
01:02It's tough for landlords to keep raising the rents when people simply can't afford it.
01:06More people are also moving into share houses.
01:09We surveyed over eight and a half sharers from across Australia.
01:13Almost half of all respondents have turned to share accommodation as a way to make ends meet.
01:19They can no longer afford to live alone.
01:21The slowdown and rent rises will also contribute to lowering inflation
01:25as housing costs make up a major portion of the goods and services the Reserve Bank looks at when it's making decisions about interest rates.
01:34And that's good news for Australians because it might influence the RBA to move on rates sooner than later.
01:40A rate cut will also lower mortgage repayments for landlords who then might hold off hiking rents in the near future.
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