Across the nation, the cost of renting a house is expected to rise 11% in 2024, while the cost of renting a unit could climb by as much as 27%, the founder and director of the market analytics firm notes.
“This unprecedented rise underscores a challenging landscape for renters, particularly in the unit market where affordability has traditionally been a key attraction,” Mr Lardner said.
In many markets, decreasing affordability could be a bane for investors.
They might find demand for their properties drop or secure tenancies come to and end.
However, in locations where rentals are currently affordable – taking up no more than 30% of the median income in an area – could prove worthwhile.
“Despite the looming affordability crunch, certain suburbs – particularly those in the unit market – present notable opportunities for investment, buoyed by the dual prospects of robust rent growth and maintained affordability,” Mr Lardner said.
The new Rental Growth Top 100 report contains the top scoring suburbs across the nation, based on rental affordability, projected rental growth, and SuburbTrends's proprietary ‘investor score’.
The investor score aggregates eight critical measures such as yield, vacancy rates, and inventory levels, weighing the measures to create a score out of 100, with 100 representing an incredibly attractive market.
Below are some of the top suburbs for property investors seeking rental growth in 2024.
Investment opportunities in NSW
When it comes to property in New South Wales (NSW), the report highlights Cobar and Windsor - Bligh Park among many potential opportunities.
|
Property type |
Suburb |
Median asking price |
Yield estimate (now) |
Rent growth forecast (12 months) |
Investor score (now) |
|
House |
Cobar |
$210,000 |
7.4% |
>20% |
79 |
|
Unit |
Windsor - Bligh Park |
$655,000 |
3.3% |
>20% |
83 |
Cobar, located in NSW’s Far West, sees median asking rents of $300 per week for houses and rent-to-income ratio of 18%. Its vacancy rate has also tumbled in recent times, sliding from 1.3% this time last year to 0.6% currently.
While vacancy rates in Windsor - Bligh Park have lifted ever so slightly in the past year, from 1.1% to 1.2%, the market remains tight and median unit rents have already pushed 20% higher to $420 per week.
Investment opportunities in Victoria
Those looking to invest in Victoria have a swath of opportune areas to choose from, SuburbTrends has found.
If you’re more drawn to houses, you might consider the Southern Grampians region or, for those looking to buy a unit, the more urban St Kilda East could be worth looking at.
|
Property type |
Suburb |
Median asking price |
Yield estimate (now) |
Rent growth forecast (12 months) |
Investor score (now) |
|
House |
Southern Grampians |
$295,000 |
6.2% |
>10% |
80 |
|
Unit |
St Kilda East |
$574,000 |
4.3% |
>20% |
85 |
Located in South West Victoria, the Southern Grampians region boasts the Grampians National Park as its picturesque backyard. The rent on a house there costs a median $350 a week while its vacancy rate has nearly halved in recent times, currently sitting at 1.4%.
It's a similar situation in the vastly different market that is units in St Kilda East. There, the vacancy rate has slumped from 1.3% last year to 0.8% in 2024. Simultaneously, median asking rents have lifted by $80 per week to $480.
Investment opportunities in Queensland
The Sunshine State appears to be on the minds of investors all over in recent times. In 2024, two of its many opportunities lie in Biloela and Sunnybank.
|
Property type |
Suburb |
Median asking price |
Yield estimate (now) |
Rent growth forecast (12 months) |
Investor score (now) |
|
House |
Biloela |
$310,000 |
6.7% |
>10% |
84 |
|
Unit |
Sunnybank |
$570,000 |
3.6% |
>20% |
88 |
The regional township of Biloela offers a median asking price for houses of around the $300,000 mark and a median weekly rent of $400. It also has an incredibly low vacancy rate of just 0.3% – half of what it was this time last year.
Meanwhile, to the south of Brisbane lyes Sunnybank, where houses are largely unaffordable for renters – taking up 38% of the average income – potentially making units more attractive.
Investment opportunities in Western Australia
Another property investor hot spot popping up in recent years has been Western Australia, with Banjup possibly an opportunity for those investing in houses and North Perth’s unit market also offering notable potential.
|
Property type |
Suburb |
Median asking price |
Yield estimate (now) |
Rent growth forecast (12 months) |
Investor score (now) |
|
House |
Banjup |
$680,000 |
5.0% |
>10% |
80 |
|
Unit |
North Perth |
$532,000 |
5.5% |
>20% |
90 |
Banjup houses typically command a median rental income of $650 a week, according to SuburbTrend’s report, while North Perth units are priced at a median $560.
Both suburbs have vacancy rates of under 1%.
Investment opportunities in South Australia
Finally, South Australia is also home to a wealth of investment opportunities, the report found, including Clare, a favourite for wine enthusiasts, and Adelaide’s Blackwood.
|
Property type |
Suburb |
Median asking price |
Yield estimate (now) |
Rent growth forecast (12 months) |
Investor score (now) |
|
House |
Clare |
$390,000 |
5.1% |
>10% |
83 |
|
Unit |
Blackwood |
$515,000 |
4% |
>20% |
90 |
Both areas have notably low vacancy right now, and a rent-to-income ratio of 28% and and 19% respectively for the listed property types.
Image by Phillip Flores on Unsplash
