Everyone scouring rental advertisements right across Australia for somewhere to live is telling the same story: it's a full house, according to the Real Estate Institute of Australia (REIA).
And the sentiment has now been backed up by figures released this week in the Mortgage Choice/REIA Real Estate Market Facts, which show that vacancy rates range from as low as 1.1 per cent in Canberra to a not much better 2.1 per cent in Perth.
REIA President Graham Joyce said that with the successive interest rate rises, considerable pressure has been brought to bear on rental markets, and vacancy rates are continuing to decline around the country.
"Median rent increases over the year to September 2006 have outpaced the 3.9 per cent CPI increase across Australia," Mr Joyce said.
"The strong annual growth in rents can be attributed to the shortage in supply of rental accommodation. This is expected to continue into the coming months, particularly if the number of first homebuyers entering the market continues to decline, and if interest rates rise again.
"While this is a difficult environment for renters, investors are encouraged by improving returns on their investments," he said.
The September quarter Real Estate Market Facts reports average annual returns across the country on 3-bedroom houses of between 14.1 per cent and 17.1 per cent over the period from March 1983 to the present.
Similarly, 2-bedroom other dwellings returned between 12.0 per cent and 17.2 per cent in the period from November 1988 to the present.
"September quarter 2006 figures compared with the previous year indicate the market is still strong in Darwin and Perth with prices up 10.0 per cent and 6.2 per cent respectively over the quarter. Perth is now the second most expensive city in Australia behind Sydney, and Darwin has moved into third place," Mr Joyce said.
Quarterly price growth was also strong in Hobart (4.7 per cent with more subdued growth in Melbourne (1.5 per cent) and Brisbane (1.2 per cent). Adelaide, Sydney and Canberra recorded slight falls in median house prices.
Over the year, however, price growth was healthy in all cities except Sydney, with Canberra up 7.1 per cent over the year, Hobart up 8.8 per cent, Melbourne up 6.2 per cent, Adelaide up 3.6 per cent and Brisbane up 6.5 per cent. Sydney prices increased by 0.6 per cent over the year.
Mortgage Choice National Manager Corporate Affairs, Warren O'Rourke said although housing affordability is an issue, the company's recent independent online `emotional drivers' survey showed less people are buying with a partner and more are buying on their own.
"Seventy-six per cent of those who purchased a home within the last two years bought with their partner and 18 per cent bought solo, while significantly less people buying in the next two years will buy with a partner - 56 per cent - and significantly more - 36 per cent - will buy solo," Mr O'Rourke said.
"So the housing market looks set to continue to see more Australians taking out mortgages for which they have sole responsibility. Although people are partnering up later in life, this will not prevent them from buying their own little piece of Australia," he added.
