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
|Parramatta - Rosehill||71%|
|Redfern - Chippendale||67%|
|Potts Point - Woolloomooloo||66%|
|Sydney - Haymarket - The Rocks||66%|
|Pyrmont - Ultimo||65%|
|Waterloo - Beaconsfield||64%|
|Newtown - Camperdown - Darlington||63%|
|Auburn - North||63%|
Source: Savills Research, 2016 Census
Proportion of renters in 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
|Arncliffe - Bardwell Valley||46%||33%||13%|
|Homebush Bay - Silverwater||51%||42%||9%|
|Mascot - Eastlakes||48%||39%||8%|
|Concord West - North Strathfield||48%||40%||8%|
|St Marys - Colyton||44%||37%||8%|
|Shortland - Jesmond||50%||43%||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
Footnote: Analysis excludes those who did not answer or selected ‘not applicable’