Tweed rental prices are the highest north of Sydney.
Tweed rental prices are the highest north of Sydney. John Houldsworth

Tweed rental prices continue to soar through the roof

THERE'S no end in sight for high rental prices with the Tweed being named as having the highest rental market north of Sydney.

A recent report released by Domain showed Tweed residents pay an average of $480 per week for a house and an average of $360 per week for a unit.

This data comes after the Tweed Daily News reported last week some residents were struggling to find somewhere to live because of the the high demand for rental properties.

Domain chief economist Dr Andrew Wilson said the Tweed had become a very strong region for rental properties.

"Tweed's rental growth is very strong,” Mr Wilson said.

The data showed there was a 6.7% increase from December 2015 to December 2016 in the rental price of a house on the Tweed.

But it's the 5.9% increase over 12 months in Tweed unit rental prices that has caused the shire to have one of the highest unit rental prices of any major regional area in New South Wales compared to a 3.3% increase in Lismore and a 2.9% increase in Ballina.

Mr Wilson warned the increase in rental prices was set to continue.

"Rent stress is becoming a real issue,” he said.

"There's always a shortage of rental stock and the coming debate will be about affordable rent.

"Rents are growing much faster than income.

"They tend to plateau because tenants can't afford to pay any more. Once income starts to grow than rents start to grow.”

North Real Estate business growth manager Lisa Mussing said one of the reasons why Tweed had become a hot spot for high rental properties was because of the high influx of people moving from Sydney and Melbourne to the area.

"More investors are buying and people are moving from interstate,” Ms Mussing said.

"People who are used to paying these high rates in Sydney and Melbourne don't mind paying them here.”

Ms Mussing said investors are taking advantage of the number of people willing to pay higher rents, which is causing distress for current residents struggling to find an affordable rental property.

"Investors are expecting this now so they're expecting high rental returns,” she said.

"With people moving up to the Tweed, it's making it difficult for the locals to find property.”

In comparison to the rental increase, the data released by Domain showed there had also been a 12.8% growth in house prices over a 12-month period.

The data showed the median house price in Tweed reached $530,000 over the December quarter.



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