Can You Pick The Next Hot Rental ‘Burb?
For generations, daggy inner-city suburbs have been transformed into hotspot destinations thanks to renters.
These renters are often priced out of their former neighbourhoods or start finding the rental market too competitive and eventually seek cheaper pastures nearby.
Demand for houses in Brisbane CIty is high, with 130% more property views per listing than the state median of 1595
See how Brisbane City compares to its surrounding suburbs.
What to look for…
When it comes to picking the next hot rental suburb, realestate.com.au executive manager – rent Kul Singh says you should keep an eye out for cheaper surrounding suburbs to those that are already gentrified and in high demand.
“52% of renters aged 18-39 told us that location is the most important factor for choosing a rental, however price was a clear second at 33%. If you can find one of these neighbouring suburbs that still ticks the boxes for things like access to public transport and being relatively close to the city, you could be onto a winner,” he says.
In fact, Singh says that as we see a new generation of renters move into an area, the suburb often changes with them.
“When an influx of a new demographic of renter moves to a suburb that may have been more blue-collar or working class in the past, it can really change the character of a neighbourhood. For example, 56% of renters we surveyed said access to bars and restaurants was an important factor when choosing a rental property.”
As rental demand increases, buyers start to snap up properties in these gentrifying suburbs and then older gens start moving in. Renters once again become priced out, which means moving to a new suburb where rent is cheaper. The process of gentrification starts all over again.
The good news for renters is that even if they find themselves needing to move to the next under-the-radar suburb, chances are they’re only an extra five-minute drive away from their original hangout.
Melbourne: Can’t afford Northcote? Try this ‘burb instead
In Victoria, Northcote is the most in-demand suburb for renters who want a northside lifestyle that offers all the fun of High Street.
Northcote has a median rental price for a house of $620, whereas just up the road in Preston, median rent is $480 per week.
Preston has been showing strong signs of being the next hotspot ‘burb for renters where cool restaurants, cafes and shops are starting to open their doors. Earlier this month, craft brewery Moon Dog World launched in the neighbourhood, which is sure to draw the cool kids out.
Sydney: Can’t afford Bossley Park? Try this ‘burb instead.
In New South Wales, Bossley Park appeared as the most in-demand rental suburb where the median weekly rent is $485.
However, just 4.5kms away is Wakeley where renters will spend $475 per week on rent.
Brisbane: Can’t afford Tugun? Try this ‘burb instead
Unsurprisingly in Queensland, it was the beach suburbs that were the most in-demand for renters with houses in Tugun with 3,678 views per listing per month to realestate.com.au and an average weekly rent of $600.
This suburb comes with direct access to the beach and a direct route along the Gold Coast Highway to the Gold Coast.
However, Tweed Heads West is also showing a lot of promise as a hot rental ‘burb where you can make a big saving in weekly rent – where they average $105 less at just $495.
Perth: Can’t afford Padbury? Try this ‘burb instead
In Padbury in Western Australia, you might find it hard to snag a rental as there are 2,189 views per listing each month.
Just next door you’ll find Duncraig, which is also attracting attention with its cute cafes including Little H Cafe and natural reserves such as Percy Doyle Reserve. In comparison to Padbury, it has 1,878 views per listing each month.
Hobart: Can’t afford Kingston? Try this ‘burb instead
Tassie arguably has some of the best restaurants in the country and art institution MONA attracts the artistic crowds to the area.
Kingston is the most in-demand rental suburb in the state, however, as this pocket fills up, renters are likely to flock to neighbouring suburb Blackmans Bay, which is alongside River Derwent and 17kms from Hobart.
Adelaide: Can’t afford Morphett Vale? Try this ‘burb instead
In South Australia, rental demand in Morphett Vale is the highest in the country with 4,051 views per listing each month. It is also the largest suburb in the state and there are currently 23 properties to rent here.
Data shows that by looking next door at Old Reynella, there may be less demand, but more likelihood of the renters moving here as Morphett Vale becomes ‘too cool’.
Darwin: Can’t afford Rapid Creek? Try this ‘burb instead
Rapid Creek in the Northern Territory appeared as the most in-demand rental suburb for the state. As the bordering suburb to Charles Darwin University, university students are bound to populate this area.
However, being so close to campus is a luxury at $540 per week and as students look to cheaper pastures, Nightcliff could be the answer, where demand and weekly rent are slightly less at $480 per week.
Canberra: Can’t afford Ainslie? Try this ‘burb instead
Rental demand in Ainslie in the ACT is the highest in the state and also expensive at $630 per week. It has everything on its doorstep that a local renter would desire: The Australian National University and Mount Ainslie, which is perfect for a weekend hike, as well as Edgar’s Inn – a local hotspot pub.
However, as renters are priced out of this trendy ‘burb and demand means fewer rental listings available, neighbouring suburb Watson is likely where renters will migrate to.
Here the median weekly rent is $550 and only a six-minute drive away from Ainslie.