Regional Rentals Beat Capital Cities on Price, Hawthorn Struggles

The median rent in Hawthorn has increased by 15% over the past 12 months, reaching $450 per week for a one-bedroom apartment, according to recent data from the Hawthorn Real Estate Institute.

This surge in rental prices matters now because it coincides with a period of economic uncertainty, making it even more challenging for renters to afford basic housing. The situation is further complicated by the fact that many renters in Hawthorn are also potential buyers, who are being priced out of the market by high property prices. With the average house price in Hawthorn now exceeding $1.2 million, many are being forced to reconsider their options and look to regional areas for more affordable alternatives.

In Hawthorn, neighbourhoods like Glenferrie and Camberwell are experiencing particularly high demand, with renters competing fiercely for properties on streets like Riversdale Road and Burke Road. Organisations like the Hawthorn Community House and the City of Boroondara are working to provide support and resources for renters, but the situation remains dire. Meanwhile, regional areas like the Mornington Peninsula and the Yarra Valley are attracting attention from renters looking for more affordable options, with towns like Frankston and Healesville offering a more relaxed pace of life and lower prices.

Comparing Apples to Apples

A closer look at the data reveals that regional rental markets are indeed more affordable than their capital city counterparts. For example, the median rent for a one-bedroom apartment in Frankston is $320 per week, compared to $450 in Hawthorn. Similarly, the median house price in Healesville is $680,000, compared to $1.2 million in Hawthorn. These statistics are based on data from reputable sources like the Real Estate Institute of Victoria and the Australian Bureau of Statistics, and they paint a clear picture of the affordability gap between regional and capital city markets.

So what happens next for renters in Hawthorn? For those who are unable or unwilling to leave the area, the best advice is to be prepared to act quickly when a suitable property becomes available. It's also essential to have all necessary documents and references in order, as competition for properties is fierce. For those who are open to exploring regional options, it's crucial to research thoroughly and consider factors like commute time, amenities, and community resources. With the right approach and a bit of flexibility, renters in Hawthorn can find affordable and suitable housing, even in a challenging market.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.