Figures from Housing NSW show the Hunter lags behind the rest of the state in rent increases. Since the start of 2015, rent has risen across the state at an average of 15%. While Sydney saw the greatest increase at 40%, the Hunter only saw a rise of 5%.
The cause of the sluggish growth is being put down to the number of investors providing rental properties in the region. According to Wayne Stewart from Century 21, a "steady supply of new stock to the market, which has kept rising rents to a minimum".
Wayne says this is because "Newcastle has been the focus of investment for probably the last three years". As a result, new rental properties are coming onto the market every week, meaning supply more than meets demand.
"There's more choice for tenants coming into the marketplace, and that should stay that way for a while because Newcastle and the Hunter are still very strong from an investment point of view."
While this has all been good news for renters, investors might be less thrilled. Rental property vacancy is at 4% across the Hunter, which is slightly above the 'normal' rate of 2-3%. Wayne says investors "should do your research on what are the areas with the lowest vacancy rates to make sure you've got some strong growth and consistency of rent in your investment property".
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