Kiama’s housing crisis is getting worse, with new data showing it’s more expensive than ever to rent in the local area.

Domain’s Rental Report for September 2023 shows the average rent for a house in Kiama has climbed to $673 per week. That’s a 3.5 per cent increase in the last year, and a 29.3 per cent increase in the last five years.

Similarly, the average rent for a unit in Kiama is now $580, which is a 9.4 per cent increase in the last year, and a 34.9 per cent increase in the last five years.

Notably, the cost of renting a unit in the area has grown at more than twice the rate of the cost of renting a house – an indication locals may be getting priced out of the market for houses and instead forced to compete for more affordable units.

At the time of writing, the Domain website was showing just six properties with one bedroom or more available for rent in Kiama and surrounding suburbs for less than $600 a week. Sixteen properties with two bedrooms or more were available for rent for less than $800 a week, and fifteen properties with three bedrooms or more were available for rent for less than $1000 per week.

According to the Australian Bureau of Statistics, the average weekly income for Kiama households is $1,834. The average weekly income for individuals is $827.

Domain’s Chief of Research and Economics, Dr Nicola Powell, says up to 70,000 additional rental properties are needed across the country, to bring prices under control.

“To get the rental market back up to the 2-3 per cent vacancy rate, a level where demand and supply is in balance, you need to add all the dwellings in the local government area of Newcastle to the rental market today,” Dr Powell told the Australian Financial Review.

“So, unfortunately, rents are likely to keep on rising, albeit at a slower pace in the medium term.”

AMP Chief Economist Dr Shane Oliver told the Sydney Morning Herald continuing rent increases could force young people to move back home.

“Once rent goes up, people will look at ways they can spend less on it…if you’re a young person and your rent goes up by 20 per cent, that’s an extra $100 or more you’ve got to find per week, so you’re going to look for ways to cover that cost,” Dr Oliver said.

With Kiama’s population set to reach almost 26,000 in 2026, the Domain data is likely to pile more pressure on decision-makers – across all levels of government – to come up with long term housing solutions.

Locals stopped by The Bugle this week said more homes would have to be built to accommodate more residents, but stressed the importance of getting that development right.