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Sydney has become a landlords’ market and desperate renters are paying the price

Long searches, skyrocketing prices, and diminishing quality. Sydney has become a landlord’s market, and desperate renters are paying the price.

Advertised bedrooms that are no bigger than closets. A stair railing hanging loose from the wall. Bathrooms that don’t have a door. Mould — and a lot of it. None of these details mentioned on a recent rental listing asking for upwards of $1,000 in rent a week.

This might sound like a horror story for people who haven’t been on a rental hunt in a while. But for those looking for a somewhat affordable home in Sydney’s inner-city suburbs, it’s a Saturday morning bingo card.

Here’s how it often plays out.

A rental inspection on a rainy Saturday in Sydney(ABC News: Jack Fisher)

Before you’re even through the door, you’ll be standing alongside up to 30 other hopefuls. You’ll then be shuttled through the property, back to back, elbow to elbow, in 15 minutes.

In the end, you find out at least three other groups have already offered above the asking price.

And then, with fingers crossed, it’s straight on to the next inspection.

According to Domain, rental vacancy rates across Greater Sydney dropped to 1.4 percent in April, with the number of vacant rentals halved in the three months between December and March. Meanwhile, the median weekly asking price for a rental house is a record high.

In other words, Sydney is currently what you call a “landlords’ market”.

Across the country, most states are seeing similar surges. According to Domain’s latest rental report, the median price for houses in Australian capital cities rose to $508 in the first three months of the year — the highest it’s ever been.


It’s a far cry from the height of the pandemic when the lack of international migration drove down rental prices and drastically increased vacancy rates. Across Greater Sydney, the vacancy rate peaked at 3.8 in April 2020, with similar highs recorded later in the pandemic.

The impact of the current boom is palpable at rental inspections, as prospective tenants share stories of long searches, budgets above what they can afford to pay, and disappointment at the quality of what’s available in their price range.

And the crisis is not confined to the inner city. Mary Thoms had been looking for a property for herself and two young grandchildren in the Liverpool area since Christmas last year. At this point, she says she’ll take whatever she can get.

Mary Thoms has been looking for a new rental home in the Liverpool area since December. She currently lives in Blacktown. (ABC News: Jack Fisher)

“Waking up early in the morning, the first thing is that thought: get a house, a place so that you can have a roof over your head.”

“Every Friday, I’m looking at Domain to see if there are any good houses or even units that are three-bedroom and spacious.”

“But at the inspections, there’s a lot of people, so you get rejected. It’s heartache; I’m just tired of looking.”

We speak to Mary outside an inspection for a four-bedroom townhouse in Casula in Sydney’s west. The grandmother is currently living in a unit in Blacktown, which has been plagued with break-ins and maintenance issues that have not been fixed. At $580 a week, it’s above the median price for the suburb — but well below the cost in the suburbs closer to the CBD.

Even though the price is above what she would like to pay, Mary says she will apply for the property. But she’s not feeling optimistic. “They’re all going to apply,” she says, referring to the handful of other groups there for the inspection. “So we’re going to apply, too.”

The outward push

The real estate agent also expects the property to go quickly; it’s a modern family home with a yard near Casula Public School.

It’s exactly the type of property currently in short supply and high demand in southwest Sydney, according to Michael Busdon, the property manager at Raine and Horne Liverpool.

Liverpool real estate agent Michael Busdon says rental houses in the area are in short supply. (ABC News: Michael Busdon)

“During the pandemic, house rentals increased, and apartment rentals dropped, and we had to offer people rent reductions for them not to vacate their apartments,” he says.

“It seems that house rental hopes have bolted a little, and now apartments are having their turn.”

In a “normal market”, he says, you would usually expect between five and eight people at a house inspection in his area. When a house is on the market, assuming it’s in good condition and well-located, it’s more than 16.

To explain this, you only need to look at the real estate’s print-out of available properties; during the pandemic, it was four to five double-sided pages long — now it’s down to one page, front and back.

“I have seen it worse than this,” he says, referring to the early 2000s when people would submit their application forms with cash attached “as a bribe”. Thankfully, he hasn’t seen that happen this time around, but adds: “This could be just the beginning”.

Unlike those queuing up for inspections, Michael doesn’t see the booming rental market as an entirely bad thing. “It depends on what side of the fence you are on,” he says, “if you’re a tenant, you’re probably not liking what is happening; if you’re a landlord, you’re probably feeling a little bit relieved.”

That’s because for the first time in years, as migrants return to Sydney after border closures and renters get back to business as usual, landlords are in a position to increase rents — just as the reserve bank lifts interest rates for the first time in 11 years, adding to the monthly cost of mortgages.

While there are major differences between the city rental market compared to the outer suburbs — the median rental price for a house in Blacktown in Sydney’s west is exactly half that of the inner-city suburb of Surry Hills — Michael sees it as more of a continuum: when vacancy rates drop in the city center, people start to nudge outwards out of desperation, eventually driving up prices and demand elsewhere.

“Gentrification happens in the rental market, too,” he says.

Playing the guessing game

Even with the push outwards, many are still scrambling to be close to the city, for work, lifestyle, or convenience especially as prices increase across the board.

“I’m in the Campbelltown area, which is just as expensive as the inner west,” says 20-year-old Laila Sumner. “I’m in a one-bedroom that doesn’t even have a proper bathroom, just a toilet, and a shower, and I still pay $300 a week.”

Laila hopes to move to the inner west with her partner to be closer to her job in the city. Still, outside an inspection for a two-bedroom apartment in a nondescript, red-brick building in Marrickville, the pair aren’t optimistic about their options.

“The first place we looked at was a bit of a slum; it smelt of mold,” Shay Wilson, 22, says. “It was a terrace house that had been broken into four separate apartments. I was like, ‘ah, maybe not’. Everyone walked in and then straight back out.”

As for the Marrickville apartment, advertised for $430 a week, the review wasn’t much better. While it fell within their $400 to $500 a week budget, it was old and severely lacking built-in storage.

Shay Wilson, 22, (left) and Laila Sumner, 20, outside an inspection for a two-bedroom apartment in Marrickville. The couple from Western Sydney is hoping to move closer to the CBD. (ABC News: Jack Fisher)

“It’s almost like a guessing game,” Laila says.

“Nothing seems like it’s priced fairly at all — it’s kind of like, ‘Oh, I think people will pay this for that house, let’s just put it at that’.”

At the same inspection is 25-year-old Madison McGrail, who has good reason to be looking for a new place: she’s just broken up with her partner, who she lives with in Redfern.

But timing is not on her side; since her most recent move in June last year, she says there are fewer available options, and the ones that tend to be lower quality — even with a bigger budget of $550 a week. “It’s just yucky apartments out here,” she says. She hadn’t applied for any of the six places she’d inspected so far.

“The level of quality that people think they can show houses in [isn’t acceptable],” she says. “I was at one the other day, and I was like, ‘is this place going to get cleaned again before we move in?’.”

Madison McGrail, 25, is looking for a new place after splitting with her partner.
(ABC News: Jack Fisher)

Eirene Tsolidis-Noyce is the general secretary of the newly-formed Renters and Housing Union (RAHU). The organization was formed in response to the COVID pandemic in an urgent bid to ensure renters who lost work due to lockdowns could remain in their homes.

But as the pandemic has progressed and lockdowns have eased, their attention has turned to issues within the home. “We have black mold, seriously urgent repairs, hot water that’s not running, the electricity that’s gone wrong,” she says.

“The broader trend is that the properties we live in are not kept to a minimum standard, and the responses we receive from agents on our own, as tenants, are inadequate.”

The time frames for landlords to respond to repairs differ between states. In NSW, tenants can organize for any urgent repairs — including broken hot water systems, blocked toilets, gas leaks, and broken stoves — to be fixed themselves and be reimbursed if the cost is under $1,000 and the landlord had a reasonable opportunity to respond to the request.

But when it comes to non-urgent repairs, such as a broken dishwasher or mold, there’s no avenue for tenants to go it alone with a guarantee to get their money back.

Eirene says these sorts of requests often go answered. Part of this comes down to the lack of property availability: there’s no urgency to make expensive repairs or improvements when tenants know there are few other options.

Inner-city demand

On Crown Street in the trendy inner-city suburb of Surry Hills, a crowd has gathered outside an impressive-looking three-story Victorian terrace. Despite the drizzling weather, the group huddle under umbrellas cradling takeaway coffees from the myriad of cafes on the block.

Listed at $1,200 a week for four bedrooms and two bathrooms, the property is the most expensive we have visited. It’s also the busiest; between 30 to 40 people eventually attend the inspection.

At least one group is quick to walk straight back out. “In the photos, it looks like it’s got bright lights or it’s in the middle of the day,” says Scotty Bensley, who arrived in Sydney late last year from New York. “But when you go in the house, it’s super dark. There’s a bit of Photoshop work.”

After moving to Sydney from New York, Scotty Bensely is looking for a share house in the inner suburbs. (ABC News: Jack Fisher)

Scotty has been on a “mad hunt” for a place with his two friends for about two months after his temporary accommodation in Pyrmont began leaking.

The group is realistic about the cost of living in the inner city — they’re looking at any suburbs surrounding the CBD, from Surry Hills and Paddington to Newtown and Marrickville — and each person is prepared to pay up to $400 a week for their room. For the most recent place they applied for, they negotiated above the asking price, but it hasn’t been enough so far.

“We’re all 29 and 28, working men, but I guess there’s a perception of a party house, young guys — we just want to find somewhere to live,” he says.

Recent university graduate Lola Trajkovic is also at the inspection, hoping to find a share house for herself and three friends. After landing a full-time job, it’s the 22-year-old Northern Beaches resident’s first foray into the rental market.

She thought the house was nice, but after speaking with the real estate agent, she says she was told they expect people to offer above the asking price — excluding her from the race.

Lola Trajkovich, 22, has recently graduated from university and is eager to move out of home for the first time. (ABC News: Jack Fisher)

“We’ve been looking at property websites for a couple of months, and I’ve found that even in the past two months, they’ve increased in price,” she says.

“We haven’t started applying yet, but we expect to have a lot of trouble.”

“Our expectations at the moment is that we will start looking, then we’ll reassess, lower our standards, and come back and try again.”

Getting creative

After a tough two years, real estate agent Tom Jones believes it’s a positive time for landlords, who took a significant hit to their normal cash flow during the pandemic.

He says this is because the cost of owning property in Sydney is also “drastically high”. “Even though these rents seem high for tenants, if you’re an investor looking at it on a yield basis, it’s still not a good return.”

As the leasing and new business manager at Village Property, an agency that specializes in rentals across the Sydney metro area, north shore, southern suburbs, and Parramatta, Tom’s witnessed firsthand what he calls “a drastic change in the market” that began towards the end of January summer holidays.

Real estate agent Tom Jones outside his office in the Sydney CBD. (ABC News: Jack Fisher)

But while that means good news for his clients, he’s sympathetic to the plight of renters: “It’s difficult in this market for renters to get their applications approved because there’s a lot of options for landlords.”

With more competition, Tom says applicants find innovative ways to get noticed. While many with the means go straight to the offering more money route, others are trying a more personal approach; some call agents directly ahead of time “so they know who you are”, while others bring printed-out biographies or statements to the inspection.

But asked what the best thing applicants can do to secure the keys, Tom returns to old-school advice.

“If you’re good at submitting your application with all the documents and information and have everything ready, like your references and tenancy ledger, it makes it easier for us to present your application to the owner quicker,” he says.

“[It’s also] important to build that rapport at the inspection and let the agent know that you’re interested; that way, we know where to spend our time and efforts looking into things.”

The hunt continues

Two weeks after meeting Mary at the inspection in Casula, we gave her a call to ask how she went with the application. As of last Saturday, she hadn’t heard anything back.

“It’s pretty disheartening when you don’t hear from them,” she says. “It gets so exhausting that you say you’ll take whatever, but still, that’s not even happening. It’s just waiting, waiting, and then you continue the search.”

She’s since widened her radius, meaning she’ll be looking at places further away from where her children live. But she’s desperate, and there’s a deadline looming: her grandson is celebrating his third birthday in June, and she’d like to do something nice in a new home.

“It’s all about the children, as long as I have a nice place for them,” she says. “But finding a decent one is like winning the lottery.”


Words: Maani Truu

Photographs: Jack Fisher

Dorothy R. Barrett

I’m a full-time blogger by passion. This is my first blog, and I'm excited to share everything that I love about technology, business, and lifestyle with you. I’m a writer by trade, and I can be found writing about tech, business, and lifestyle on my personal blog.

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