Aussie rents set to rise amid housing shortage

Buy-to-let investors in the Australian property market may be interested to learn that rents in the country are expected to rise as a result of a slowdown in house building.

Housing analysts in the country have forecast rent rises across all Australian capital cities as new home construction fails to keep up with demand, home borrowing stabilises at weaker levels and the population continues to grow.

According to a report in the Sydney Morning Herald, tenants in Perth, Brisbane and Sydney could be forced to get used to annual rises of as much as six or seven per cent.

ICAP economist Adam Carr told the news provider that there was an expectation that rental rates would climb over the next two to three years.

"We've got solid population growth, good incomes growth, good jobs growth and we're just not building enough houses, so the logical conclusion from that is that rents are going to be pressured," Mr Carr explained.

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