Rent values in the Illawarra continue to climb, with dwelling rents going up by an average of 0.6 per cent in July.
According to CoreLogic's monthly Chart Pack figures, the median rent for the Illawarra for all dwellings (houses and units combined) is $704, up from $663 a year prior.
This is compared to a current median rent of $573 for the rest of NSW, excluding Sydney, and $539 a year prior.
Read more: Cliff Road apartment fetches $3m-plus in off-market sale
Meanwhile, in Greater Sydney, the current median rent is $777.
CoreLogic economist Kaitlyn Ezzy said after a slight growth in rental values at the start of 2024, the pace of growth of the rental market in the Illawarra had begun easing off slightly in the past three months.
She said the re-acceleration in growth at the start of the year was likely due to those being priced out of the capitals looking to more affordable, commutable markets.
"Over the past couple of years, the capitals have been out-pacing the regional markets in terms of rental growth," she said.
"This has allowed the regions to regain some of that affordability advantage that they had previously lost over the COVID period."
Ms Ezzy said the Illawarra's lifestyle benefits would still have a degree of impact on rental values, with some renters leaving the capital cities during the COVID period and relocating to lifestyle markets such as the Illawarra.
"That has definitely been a factor driving rents higher over the past five years," she said.
"It's likely (still) having some impact. And when people tend to look to buy in an area, they'll often rent before they put down roots."
Ms Ezzy said the Illawarra, when compared to Sydney, still has about a $70 discount in terms of median rental value.
"So it has somewhat of an affordability advantage for Sydney-siders, but less so from the other regional markets," she said.
According to CoreLogic's figures, there was a 0.1 per cent increase in national rents during July.
At an annual level, CoreLogic's Rental Value Index recorded the smallest 12-month change in three years, with national rents up 7.8 per cent in the year to July, down from a recent peak of 8.6 per cent in April.
The region's most expensive rentals
As rent values continue to climb in the Illawarra, we look at the rental properties commanding the highest prices.
A multi-level, Moroccan-inspired home at Thirroul has a rental asking price of $3000 per week.
The property, located at 46a Robinsville Crescent features five bedrooms; private walled garden with a spa and swimming pool; views of the escarpment from a choice of three balconies on the first floor; and four bathrooms.
Apart from the bedrooms, the downstairs basement is used as a retreat.
An eye-catching coastal property in Wollongong's northern suburbs has a rental asking price of $2500 per week.
The property, located at 363 Lawrence Hargrave Drive, Scarborough features three bedrooms plus study/office, three bathrooms, and an additional downstairs toilet, as well as a spacious living room, dining room, and kitchen with walk-in pantry.
The property also boasts an outdoor entertaining area with views of the sea and escarpment, a garage with space for two cars, and a patio surrounded by vegetation.
This luxury home is situated in an elevated position in the Edgewood Estate at Woonona.
Located at 31 Hollymount View, Woonona, it has an asking price of $1800 per week.
Featuring panoramic views of the ocean, the home is spread across two levels with four oversized bedrooms, with the potential to add a fifth bedroom downstairs. Other features include an in-ground pool and outdoor shower.
