It is all about the cost of living
The cost of rent in Australia is rising at an alarming rate, with average rent prices rising by 7.5 per cent a year.
That means that the average rent for a three bedroom house in Melbourne has gone up by over 80 per cent since 2013.
The increase is driven by increases in the average monthly cost of buying property, the average cost of renting, and the cost per square metre of land.
A key factor behind the rise is that Australia’s low labour cost has made it an attractive investment environment.
The number of foreign nationals entering Australia for work has risen from 2.5 million in 2013 to 6.3 million in 2016.
In 2018, there were more than 20,000 people who had been granted permanent residence, and more than 1.6 million who had applied for work-related visas.
A number of factors also have contributed to the increase in the cost to rent of Australia.
The average cost per annum of renting a house has increased by 6.7 per cent, and rents have risen even more than the cost.
There are also increases in capital gains tax on property, and increases in stamp duty and stamp duty concessions.
There is also a decrease in the supply of land as land prices have declined.
A rise in interest rates in Australia has also had a significant effect on the cost and availability of land in Australia.
Property prices have risen in recent years, and property investment has continued to rise.
In 2017, property investment in Australia increased by 15 per cent and rental investment by 13 per cent.
The total value of property invested in Australia in 2017 was $16.8 trillion, or about $17,400 per person, according to a report by Property Economics.
The median annual rent for one-bedroom apartment in Melbourne increased by 9.5 percent between 2014 and 2017, and for two-bedroom apartments, it increased by a further 16.1 percent.
Australia’s housing affordability crisis has had an impact on many Australians, with many moving away from the city to seek affordable housing in suburbs and suburbs in the country’s north and west.
The problem is particularly acute in the suburbs of Adelaide, Perth, and Brisbane, which have been hit hard by the crisis.
In Melbourne, there have been several large-scale demolitions in recent months.
The impact on rental prices is expected to be much greater as there is a significant number of people who have not been able to find affordable housing.
“In recent years the market for rental property in Australia seems to have been more favourable, but now we are seeing a very dramatic increase in demand and an overall decrease in supply,” David Mabey, CEO of property brokerage Property Economics, told Business Insider.
“The current rate of supply growth in Australia could well be at the bottom of the queue.
In some places we are already seeing prices over $3,000 per square foot, and we are probably looking at another 10 per cent rise over the next 12 months.”
While the average price of a house in Australia was $1,200 per square meter in the year to March 2017, it is now $1 and up.
“We expect the average Australian property to be in the $2,400 to $2.6k range by 2020, with the average house now going for $3.4 million to $4.5million,” Maby told Business Intern.
In a survey conducted by property firm CBRE earlier this year, more than half of respondents reported that their rent was increasing more rapidly than they could afford.
Mabey said that while the increase was significant, the problem was not new.
While he did not know the exact figure for the increase, he noted that the proportion of people being affected by the rising cost of housing is increasing, and that many people are struggling to find accommodation.
“A significant proportion of renters in Australia are finding it harder to make ends meet, or are being left with nothing at all,” Mbey said.
As the economy recovers from the financial crisis, the rental market in Australia will be a key battleground in the upcoming federal election.
The government has announced a number of measures aimed at helping people move back to their homes.
It has introduced a rental subsidy scheme for first-time buyers to help offset the cost, and is investing in more affordable housing across the country.
Australia’s housing market is now the envy of the developed world, but the problem is only likely to get worse as the housing bubble bursts.
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