How much for that extra bedroom? The cost difference between renting two, three and four bedrooms

Renters are paying dearly for homes with an extra bedroom amid hefty price increases around the country. 

The latest Domain Rental Report shows the steepest rate for an extra bedroom is being paid by renters in Sydney, who are forking out an extra $205 a week to upgrade from a two-bedroom unit at $550 a week to a three-bedroom unit at $755 a week.

Canberra renters are facing similar upsizing costs with an extra $150 a week for a four-bedroom house – up from $650 a week for three bedrooms to $800 a week. 

In Melbourne, there’s a $100 price difference between a one-bedroom unit at $350 a week and a two-bedroom unit, at $450 a week.

Extra bedrooms in Melbourne houses are not nearly as expensive, though. Melbourne tenants will find the median cost of a three-bedroom house is no more than the median cost of a two-bedroom house. Both are $450 a week. And for those who want a four-bedroom house, it’s only another $40 a week – a far cry from the cost differences recorded in other capital cities.

In Brisbane, there’s a $95 price difference between a two-bedroom house at $400 a week and a three-bedroom house at $495 a week.

All capital cities have been hit with sizeable rent increases in the year to June, particularly in Sydney where prices rose by 8.8 per cent for houses and 11.4 per cent for units. Melbourne renters are paying 7.6 per cent extra for houses and 10.6 per cent for units.

Many tenants are opting for share-houses to keep costs down and this is pushing up demand for four-bedroom houses and three-bedroom units, said Emily Sim, chief executive of property management at Ray White Sydney. 

“With rental affordability like this, the cheapest way to live in the city is to share a flat or share a house,” she said.

“Our agencies say their share-house properties are leasing super-quickly, especially in the inner east and inner west.”

Sim pointed to the recent letting of a four-bedroom house in Drummoyne for $1350 a week, which she estimates would only have fetched $1150 a week last year. 

Brisbane rental prices are being lifted by the double whammy of low rental stock and increased competition from sea changers migrating from southern states, said Rob Fearnley, head of property management at McGrath Brisbane.

“We’re seeing 50 to 60 per cent less stock than we would usually see in a market,” he said.

“People moving from Sydney and Melbourne to Brisbane create extra demand, so when you have those two factors you’re seeing reduced days on market and increases in rent.”

FOMO, or fear of missing out, was also driving a lot of renters to pay high prices, Fearnley said. 

“I think people are worried about missing out because when they’re clear about what they want, they’re going in with an aggressive price to take that property,” he said.

However, there are some cities where the price difference for a property with an extra bedroom is not as high.

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In Perth, renters are paying $20 more a week to afford a three-bedroom house at $470 a week over a two-bedroom house at $450 a week.

In Adelaide, where one-bedroom units cost a median of $340 a week, renters can pay an extra $40 a week for a two-bedroom unit priced at $380 a week. 

These increases may be small when compared to bigger cities, but they may still rise further. 

Domain’s chief of research and economics, Dr Nicola Powell, said a lack of rental properties was likely to keep prices surging in the months ahead.

“I think it’s going to take quite a lot to shift the dynamics in the rental market in terms of supply,” she said.

“Vacancy rates are really tight in many areas of Australia, and this isn’t one single area, this is an Australia-wide issue where we’ve got very tight rental markets. 

“What we’ve seen particularly during the pandemic is escalating purchasing prices locking people into the rental market for longer. Those affordability hurdles have kept people renting for much longer than they anticipated.

“During the pandemic, as well, we saw lower levels of investment activity and that’s one of the things feeding into these rental conditions now.”

Sydney

HOUSES: 

2-bedroom houses up from $425 in June 2021 to $460 in June 22 (8% rise)

3-bedroom houses up from $520 in June 2021 to $580 in June 22 (11% rise)

4-bed house up from $650 in June 2021 to $700 in June 22 (7.69% rise) 

Average rise per bedroom: 8.8%

UNITS: 

1-bedroom units up from $445 in June 2021 to $490 in June 22 (10% rise)  

2-bedroom units up from $480 in June 2021 to $550 in June 22 (8.3% rise)  

3-bedroom units up from $650 in June 2021 to $755 in June 22 (16% rise) 

Average rise per bedroom: 11.4%

Melbourne

HOUSES: 

2-bedroom houses up from $420 in June 2021 to $450 in June 22 (7% rise)  

3-bedroom houses up from $420 in June 2021 to $450 in June 22 (7% rise)

4-bed house up from $450 in June 2021 to $490 in June 22 (8.8% rise) 

Average rise per bedroom: 7.6%

UNITS: 

1-bedroom units up from $310 in June 2021 to $350 in June 22 (12.9% rise)  

2-bedroom units up from $395 in June 2021 to $450 in June 22 (13.9% rise)  

3-bedroom units up from $495 in June 2021 to $520 in June 22 (5% rise)

Average rise per bedroom: 10.6%

Brisbane

HOUSES: 

2-bedroom houses up from $360 in June 2021 to $400 in June 22 (11% rise)  

3-bedroom houses up from $420 in June 2021 to $495 in June 22 (17.8% rise) 

4-bed house up from $475 in June 2021 to $550 in June 22 (15.7% rise) 

Average rise per bedroom: 14.8%

UNITS: 

1-bedroom units up from $360 in June 2021 to $395 in June 22 (9.7% rise)

2-bedroom units up from $420 in June 2021 to $460 in June 22 (9.5% rise)  

3-bedroom units up from $450 in June 2021 to $500 in June 22 (11.1% rise) 

Average rise per bedroom: 10.1%

Perth

HOUSES: 

2-bedroom houses up from $420 in June 2021 to $450 in June 22 (7.1% rise)  

3-bedroom houses up from $420 in June 2021 to $470 in June 22 (11.9% rise)

 4-bed house up from $500 in June 2021 to $550 in June 22 (10% rise) 

Average rise per bedroom 9.6%

UNITS: 

1-bedroom units up from $330 in June 2021 to $350 in June 22 (6% rise)  

2-bedroom units up from $385 in June 2021 to $420 in June 22 (9% rise)  

3-bedroom units up from $440 in June 2021 to $475 in June 22 (7.9% rise)

Average rise per bedroom: 7.6%

Adelaide

HOUSES: 

2-bedroom houses up from $385 in June 2021 to $430 in June 22 (11.6% rise)  

3-bedroom houses up from $420 in June 2021 to $475 in June 22 (13% rise)

4-bed house up from $500 in June 2021 to $550 in June 22 (10% rise) 

Average rise per bedroom: 11.5%

UNITS: 

1-bedroom units up from $320 in June 2021 to $340 in June 22 (6.2% rise)  

2-bedroom units up from $350 in June 2021 to $380 in June 22 (8.5% rise)  

3-bedroom units up from $425 in June 2021 to $475 in June 22 (10.5% rise)

Average rise per bedroom: 8.4%

Canberra

HOUSES: 

2-bedroom houses up from $500 in June 2021 to $550 in June 22 (10% rise)  

3-bedroom houses up from $580 in June 2021 to $650 in June 22 (12% rise)

4-bed house up from $720 in June 2021 to $800 in June 22 (11.1% rise)

Average rise per bedroom: 11%

UNITS: 

1-bedroom units up from $450 in June 2021 to $490 in June 22 (11.3% rise)

2-bedroom units up from $540 in June 2021 to $595 in June 22 (10.1% rise)  

3-bedroom units up from $600 in June 2021 to $670 in June 22 (11.6% rise) 

Average rise per bedroom 10.8%)

Darwin

HOUSES: 

2-bedroom houses up from $420  in June 2021 to $455 in June 22 (8.3% rise)  

3-bedroom houses up from $550 in June 2021 to $570 in June 22 (3.6% rise)

4-bed house up from $650 in June 2021 to $680 in June 22 (4.6% rise) 

Average rise per bedroom: 3.8%

UNITS: 

1-bedroom units up from $300 in June 2021 to $350 in June 22 (16.6% rise)  

2-bedroom units up from $430  in June 2021 to $470  in June 22 (9.3% rise)

3-bedroom units up from $550 in June 2021 to $600 in June 22 (9% rise) 

Average rise per bedroom: 11.6%

Hobart

HOUSES: 

2-bedroom houses up from $425 in June 2021 to $470 in June 22 (10.5% rise)  

3-bedroom houses up from $495 in June 2021 to $550 in June 22 (11.1% rise)

4-bed house up from $590 in June 2021 to $640 in June 22 (8.4% rise) 

Average rise per bedroom: 10%

UNITS: 

1-bedroom units up from $340 in June 2021 to $370 in June 22 (8.8% rise)  

2-bedroom units up from $420 in June 2021 to $470 in June 22 (11.9% rise)

3-bedroom units up from $525 in June 2021 to $573 in June 22 (9.1% rise) 

4-bed house up from $650 in June 2021 to $680 in June 22 (4.6% rise) 

Average rise per bedroom: 9.9%