Where are the renting hotspots in NSW?

Where are the renting hotspots in NSW?

Analysis of the 2016 Census allows us to have a better understanding of how people live and where the biggest changes have occurred. This blog examines renting trends in NSW.

Where do renters live?

Across NSW, 32 percent of households rent rather than own their homes. However, there is huge variation across the state with the proportion of rented households ranging from two thirds in some inner city locations to less than ten percent in more remote areas. 

Seven of the top ten locations with the highest proportion of renters are unsurprisingly in inner city locations around the Sydney CBD and harbour. This is due to the number of properties owned by investors and strong rental demand. Many young professionals will choose to rent for longer in more desirable, central locations close to work and amenities rather than buy a property on the outskirts of a city.

Perhaps more surprisingly, ‘Parramatta – Rosehill’ tops the list as the location with the highest proportion of renters in NSW. Parramatta is going through a significant transformation, benefitting from infrastructure projects, development activity and population growth. This has created a vibrant city, which is popular with renters and still more affordable than areas around the Sydney CBD.  

 Top 10 SA2s with the highest
 proportion of renters in NSW
    % Rented       
 Parramatta - Rosehill 71%
 Warwick Farm 69%
 Redfern - Chippendale 67%
 Potts Point - Woolloomooloo 66%
 Sydney - Haymarket - The Rocks 66%
 Surry Hills 65%
 Pyrmont - Ultimo 65%
 Waterloo - Beaconsfield 64%
 Newtown - Camperdown - Darlington 63%
 Auburn - North 63%

Source: Savills Research, 2016 Census

Proportion of renters in NSW

Proportion of renters NSW

Which locations saw the biggest increases in renters? 

The results from the 2016 Census have shown that the trend towards renting rather than owner occupying has continued. The proportion of renters in NSW has increased over the past five years by two percent but some areas have seen larger changes than others. 

The location which saw the biggest increase was ‘Arncliffe - Bardwell Valley’ and the top ten list also includes two other locations around Botany Bay. This area, along with a cluster of locations around Homebush, has seen a large rise in the number of renters due to high density development activity and therefore an increased number of investor buyers and rental stock available. 

Two locations on top ten list are outside of Sydney. Seventh on the list is ‘Shortland – Jesmond’ in Newcastle, demonstrating the city’s evolution into an attractive destination for young professionals. ‘Maitland’ in the Lower Hunter Valley also makes the top ten although it has increased from lower base than the rest of the list.   

 10 SA2s with biggest increase
 in renters in NSW
    % Renters    
    % Renters    
 Arncliffe - Bardwell Valley 46% 33% 13%
 Homebush Bay - Silverwater 51% 42% 9%
 Homebush 55% 47% 9%
 Mascot - Eastlakes 48% 39% 8%
 Concord West - North Strathfield 48% 40% 8%
 St Marys - Colyton 44% 37% 8%
 Shortland - Jesmond 50% 43% 7%
 Kogarah 45% 38% 7%
 Maitland 34% 27% 7%
 Lakemba - Wiley Park 58% 51% 7%

Source: Savills Research, 2011 and 2016 Census  

Change in the proportion of renters in NSW: 2011 to 2016

Change in the proportion of renters NSW

Footnote: Analysis excludes those who did not answer or selected ‘not applicable’

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The team at Savills are experts in their respective fields, with extensive experience backed by 150 years of Savills industry knowledge. This makes us well placed to provide you with the most informed view of current trends as well as helpful guides and top tips across the commercial and residential property sectors.

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