The number of rental properties under $500 a week across Australia's major cities has almost halved in the past year, new data shows, highlighting the acute need for more homes to rent.
Properties listed at less than $500 a week numbered 178,321 in April 2023 and saw a 47 per cent plummet to 94,887 in April this year, an analysis of rental listings by Ray White showed.
When splitting those properties out by type, the number of houses listed fell by 50 per cent - about 33,000 were available in the past year compared with roughly 66,000 in the year before.
Affordable units were more available than houses, but the number of those priced below $500 a week still declined by 45 per cent.
Ray White senior data analyst Atom Go Tian said the data clearly showed the impact high migration and housing supply issues were having on the rental market.
Sacrifices to be made
He said it left many with no choice but to live somewhere smaller, in a share-house or further away from the city than they would have.
"The main point is that prices are going up and people will have to sacrifice on location and accessibility," Mr Go Tian said.
Total rental listings (both houses and units) at any price point in the major cities had also declined by 6 per cent in the year to April.
The largest number of properties available for rent in the past year were in Melbourne - with 16005 below $500 (8.6 per cent) and 52929 listed overall, representing 29 per cent.
Best city for under $500
"Melbourne appears to be your best bet. No other city comes close to the 729 house listings under $500 that you can find in Werribee," Mr Go Tiosan said.
Still, the majority of those were on the outskirts for houses, or in student-style accommodation in the city centre, the data showed.
The far west of Melbourne had the most houses for rent under the $500 threshold, with suburbs including Werribee, Tarneit and Wyndham Vale seeing between 500 and 730 listings in the year to April.
However, those suburbs still had fewer listings at that price-point than in the year before - Tarneit losing a notable 700 listings in 12 months.
Melbourne's CBD was among the areas with the most units for rent - 1333 compared with fewer than 800 (and more often much fewer) in every other city suburb.
Despite this, it still had half as many units listed below $500 than it did two years ago, and its median asking rent for units was $615.
State of the nation
Sydney had the second highest number of rentals under $500 - about 20,000 - but this represented only 13 per cent of the market, compared with Melbourne's 35 per cent.
Hobart saw the highest percentage of both houses and units under $500 in its rental market - 32 per cent of houses and 62 per cent of units met the criteria.
