Oct 08, 2025BusinessAsiaSydney Morning Herald

Sydney Rents Reach Crisis Point as Units Hit $750 Weekly Milestone

Night view of dense apartment buildings in Sydney with illuminated windows

Sydney renters are facing unprecedented cost pressures as new data reveals unit rents have surged to a record $750 per week - equivalent to a $1,800 monthly hit to household budgets before utilities.

Key Rent Trends:

  • $35/week annual increase: Biggest jump ever recorded
  • 4.9% year-on-year spike: Units now rising faster than houses
  • Affordability ceiling reached: Median incomes cover just 68% of unit rents

"We had to downsize when our house rent increased last year," explains Sophie Tran, a nurse renting in Ryde. "Now with unit rents spiking, we're considering moving further west - but my commute would double."

Property analysts attribute the shift to house rent stabilization ($850/week median) pushing budget-conscious tenants toward units. CoreLogic researcher Tim Lawless notes: "We're seeing the 'cascading effect' - families moving to apartments, singles to share houses."

Renter Impact:

  • 67% report cutting groceries/entertainment budgets
  • 41% delaying major life decisions (marriage, children)
  • Average commute times increased 12 minutes since 2023

Industry experts predict further pressure through 2026 as immigration rebounds and rental vacancy rates (currently 1.2%) remain near historic lows.

"This isn't just about housing - it's reshaping our cities," warns Urban Taskforce CEO Tom Forrest. "Essential workers can't afford to live where they work."

Government rent assistance packages (increased 15% in 2025) continue to lag behind actual price growth, leaving many tenants facing $8,000 annual shortfalls between support and real costs.

Read original SMH report: $750 rent milestone