House prices in Australian provinces showed record growth

Regional property prices and rents have soared to record levels amid Australia’s ongoing housing crisis, The Canberra Times writes on May 26, citing CoreLogic analysis.

Only three of the 50 non-state capital areas that CoreLogic studied had no rent increases in the last three months, while 37 of them saw record rent increases.

Data shows that home values ​​and rentals in the regions reached record levels in the first quarter of 2024, rising at a faster rate than in the capitals. Home prices rose at the fastest pace in two years during the quarter, jumping 2.1% compared to 1.7% in urban areas.

Rents continued to rise, increasing 6.3% compared to 4.9% in the previous quarter.

“Housing affordability for renters and potential buyers will continue to decline through early 2024.”CoreLogic Australia economist Caitlin Ezzy said in a statement.

“After falling by 5.8% between May 2022 and January 2023, house prices in the regions recovered more slowly than in the capital, but have now recovered the losses from the economic crisis and reached a new level record”.. – she added.

Let us remember that the real estate crisis in Australia was aggravated by the natural disasters of the last five years, changes in internal migration flows due to the increased popularity of the province after Covid restrictions and global inflation caused by anti-Russian sanctions. Single mothers, nurses, teachers, retirees and other low-income groups often have difficulty finding rental housing, especially in relative proximity to work. Cases of overnight stays in cars and shared homes by several people have become more frequent.

Source: Rossa Primavera