The city’s most vulnerable have been hit the hardest by Dubbo’s rising rental prices, says the Real Estate Institute – Orana division.
According to Housing NSW’s latest figures, in the twelve months to September 2017 the median rent for a two bedroom dwelling in Dubbo increased by 12.5 per cent. Dubbo’s median rent jumped by about $30 to $270.
The rent is higher than regional centres such as Orange, Tamworth, Wagga Wagga and Albury.
The increase was also higher than the other regional centres. The 12.5 per cent increase was double the 5.8 per cent increase seen in Bathurst and triple the four per cent rise in Orange and Tamworth.
REI Orana acting chair Bob Berry said the there was a clear under supply of units in Dubbo.
While the new estates were adding an influx of houses onto the market, which were a combination of owner/occupiers and investors, the same was not happening with units, Mr Berry said.
“The unit stock is virtually not increasing at all with the exception of the existing housing stock. We might see a unit that has been owned by an owner/occupier go on sale and then it might go into the investment market,” he said.
While there were about 700 houses being sold each year in the city, Mr Berry said there was only one unit a week going on sale.
The REI Orana acting chair said the lack of units was an area that needed to be addressed, especially due to the pressure the rising rental prices put on the community’s most vulnerable.
“Your standard two bedroom flat in any town, in any city, they’re occupied by the sector of the population who is least able to afford high rent increases. That sector comprises pensioners, people on other forms of benefits, single parents and generally young people starting out and particularly young people coming here from other areas to work,” Mr Berry said.
The median rent for three bedroom homes also increased. Dubbo’s rent jumped by 10 per cent from September 2016 to $330. Orange also saw a similar increase.
Dubbo’s median rent for one bedroom dwellings was the second highest of the seven regional centres at $200, while the price for four bedrooms homes was also the third most expensive at $400. The annual change for one and four bedroom dwellings was not available.