New data shows Pyrmont is the most expensive suburb in Australia to rent a room. Photo: Dallas Kilponen
Young people planning to save money by spending a few years living in a Sydney sharehouse are in for a shock.
In the past five years the average price of renting a room in Sydney has surged by 32 per cent to an all-time high of $275 a week, new data from
Flatmates.com.au shows.
But a room at that price would be a bargain in some inner-city postcodes – there are now 25 Sydney suburbs where the average cost of renting a room is above $300.
This bedroom in Pyrmont is available for $400 a week. Photo: Flatmates.com.au
The managing director of Flatmates.com.au, Thomas Clement, said location and public transport were king.
"Most people want to live in central suburbs," he said.
"Also tourist hot spots like Manly and Bondi all have higher prices because of their popularity with both locals and overseas visitors."
Given the rental squeeze that has gripped the harbour city it is perhaps not surprising that 44 of Australia's 50 most expensive suburbs to rent a room are located in Sydney.
The most expensive suburb to rent a room in Australia is Sydney's Pyrmont with an average cost of $351.73 a week.
Next priciest is Zetland in the city's southern corridor.
"Zetland has higher prices because most bedrooms are located in brand new apartments," Mr Clement said.
There are also a few surprises on the list: Redfern at $303 a week is more expensive than Double Bay ($302 a week), and Waterloo ($316) is more pricey than Balmain ($299).
Suburbs close to large universities can also command high room prices with both Haymarket and Camperdown in the top 10.
In a city as expensive as Sydney, many students opt instead to rent a bed in a shared room.
The lack of affordable accommodation in Sydney is a factor behind the practice of unscrupulous landlords cramming as many beds as possible into their properties.
Sydney lord mayor Clover Moore announced on Tuesday the city council would be partnering with NSW Police, Fire and Rescue NSW and NSW Fair Trading in a big push to stamp out illegal accommodation providers.
"Evidence we've recently collected suggests multiple offences are taking place, some of which are outside councils' powers and responsibilities. This means a multi-agency approach is the best way to disrupt operations and deter new operators," she said.
The director of the City Futures Research Centre, Bill Randolph, says this illegal accommodation – with cases of 58 beds being crammed into a three-bedroom house – is a symptom of the price of renting in the inner city.
"There's a sub-market of people trying to get into the central Sydney housing market," Professor Randolph said.
There's a more transient, "grey market", made up mostly of international students, as well as backpackers, people on a gap year, who are highly exploitable, vulnerable tenants, he said.
But there could be hope yet.
"There is a potential for the central Sydney apartment market to oversupply in the near future," Professor Randolph said.
This supply, he said, could result in a softening of the rental market.
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