The next several years “will produce the biggest increase in rents that Australia has seen”, according to real estate analyst Simon Pressley.

Pressley, Propertyology’s head of research, is forecasting 2021 and beyond will see record increases in rents, thanks to a housing shortage. With house price growth expected to reach up to 15%, Pressley says many locations could see rents rise by $2,000 to $5,000 per annum.

“The reality is that Australia does not have enough housing supply for its population,” he says. Five out of eight capital cities, plus many regional centres, have a vacancy rate below 1%.

While Sydney and Melbourne have a surplus of rental stock and are witnessing declining rents, other locations across Australia tell a different story.

Sydney and Melbourne’s combined population of 10.5 million people have 53,500 dwellings for rent to choose from. The remaining 15.1 million Australians who live in smaller capital cities and regional areas have the choice of only 20,600 dwellings.