To move or not to move: is it cheaper to find a new place or stay when your rent increases by 10%?
<p><em><a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a> and <a href="https://theconversation.com/profiles/sara-quach-175976">Sara Quach</a>, <a href="https://theconversation.com/institutions/griffith-university-828">Griffith University</a></em></p>
<p>Your landlord has just raised your rent by 10% and your mind starts running the numbers – should you cop it sweet or look to move?</p>
<p>It’s a familiar scenario in today’s unpredictable housing market.</p>
<p>Understanding the real costs of staying versus moving is essential for making informed choices: renters must consider hidden expenses such as moving costs, deposits and changing rental rates, giving them tools to handle rising rent pressures more effectively.</p>
<h2>A grim time for many renters</h2>
<p>National median market rents have hit record highs, reaching $627 per week, with an average annual growth rate of 9.1% during the past three years, according to real estate giant <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/Budget/reviews/2024-25/Housing#:%7E:text=Based%20on%20April%202024%20CoreLogic,the%20past%203%20calendar%20years">CoreLogic</a>.</p>
<p><a href="https://www.corelogic.com.au/news-research/news/2024/rent-growth-picked-up-in-the-start-of-2024,-taking-rents-to-new-record-highs">CoreLogic</a> also reported annual rental changes (houses and units) in regional Australia are not far off from the big cities: annual rent changes were 9.4% for combined capital cities, 6.4% for combined regional areas, and 8.5% nationally.</p>
<p>So, is it better to stay or move if your rent is raised by 10%? Let’s examine the costs and benefits of each option.</p>
<h2>A breakdown of typical moving costs</h2>
<p>We’ll start with the most obvious expense: <strong>moving costs</strong>.</p>
<p>Professional moving services aren’t cheap. For example, moving a three-bedroom house in the Gold Coast costs <a href="https://www.muval.com.au/removalists/gold-coast">$1,095.25 on average</a>, with an hourly rate of $158.26.</p>
<p>In a bigger city like Melbourne, the cost is slightly higher at <a href="https://www.muval.com.au/removalists/melbourne">about $1,118.46</a>.</p>
<p>The moving costs between states or cities will be more expensive if you move further away.</p>
<p>You could choose to handle packing yourself and hire some help with a truck – a common option with businesses such as “<a href="https://www.gumtree.com.au/s-removals-storage/gold-coast/2+men+and+a+truck/k0c18643l3006035">Two Men and a Truck</a>”, which typically costs around $100 per hour.</p>
<p>Be aware, though, that the hourly rate often starts from the moment the truck leaves the company’s warehouse until it returns. Alternatively, you can rent a van for a lower price, such as $87 for a 24-hour <a href="https://www.bunnings.com.au/for-hire-handivan-24hr-first-100kms-inc-_p5470402">Handivan rental at Bunnings</a>.</p>
<p>Don’t forget the cost of moving boxes, too: Bunnings’ 52 litre <a href="https://www.bunnings.com.au/bunnings-52l-light-duty-moving-carton_p0517130?srsltid=AfmBOoqCYAWT0P5apPiJpoOLRAIpUCHNi63ztvIZrG5CxCoNOv45G0TV">moving cartons</a> cost $2.66 each.</p>
<p>End-of-lease or <a href="https://firstcallhomeservices.com.au/service-menu/bond-exit-end-lease-cleaning/"><strong>bond cleaning</strong></a> is another common expense.</p>
<p>For a typical three-bedroom property, internal cleaning can range from $365 to $500.</p>
<p>If you have pets, or kids who love drawing on the walls, your cleaning costs might be a bit higher.</p>
<p>Now, let’s look at <strong>utility connection expenses</strong> that can catch people by surprise.</p>
<p>Cancelling your internet service can be costly if you don’t meet the exit or cancellation policies. With <a href="https://www.telstra.com.au/internet/5g-home-internet">Telstra Home Internet</a>, for example, if you cancel within the first 24 months, you must return your modem within 21 days to avoid a $400 non-return fee.</p>
<p>Most providers charge a cancellation fee or require final device repayments, typically ranging from $100 to $500, depending on the remaining contract period. As a renter, it might be wise to choose a no-lock-in contract plan to avoid these fees if you need flexibility.</p>
<p>Electricity and gas connection and disconnection fees are usually minor but can add up, often costing about $40 to $60 for <a href="https://www.energyon.com.au/fees-and-charges/">connection and disconnection fees</a> for electricity alone. If your house uses gas for hot water or cooking, you may have to pay additional fees for setting up service.</p>
<p>However, there are also <strong>non-financial costs</strong>, like the time spent searching for a new home, attending inspections, and putting in applications.</p>
<p>Moving takes effort and energy for packing, transporting and unpacking.</p>
<p>Some people feel emotionally attached to their current home, which can make leaving harder.</p>
<p>Older renters <a href="https://www.sciencedirect.com/science/article/abs/pii/S1353829218311304">seem to draw strength</a> from their familiarity with, attachment to, and enjoyment of their place and community. This is something to be considered.</p>
<p>Plus, moving can take <a href="https://www.nature.com/articles/s41537-023-00349-w">an emotional toll</a>.</p>
<h2>The benefits of not moving</h2>
<p>The clear benefit of staying is <strong>avoiding the hassle</strong> of relocating.</p>
<p>Staying means saving on moving expenses and avoiding the time spent searching for a new place, packing and unpacking.</p>
<p>This may also save some people from needing to take time off work.</p>
<p>Changing and updating an address is also another tedious task that can be avoided by staying.</p>
<p>Moving can hit the hip pocket with “<strong>after moving costs</strong>” that people may not initially consider.</p>
<p>For instance, a new location might mean a longer commute. If each trip adds just 15 extra minutes, that could amount to an additional 11 hours per month over 22 workdays.</p>
<p>For drivers, increased fuel and parking expenses might also come into play.</p>
<p>Is the current or new location closer to a supermarket, hospital, and school? This proximity could be beneficial or detrimental, depending on the surrounding environment and available services.</p>
<h2>To move or not to move?</h2>
<p>One point to note is that overall, moving costs are likely to be similar between big cities and regional areas if you get moving supplies or rent a van from a large company such as Bunnings.</p>
<p>In the end, moving costs will be around $2,000 based on the figures above, and it can be around $800 to $1,000 cheaper if you opt to rent a van instead of using a full-service moving company.</p>
<p>Therefore, if the current rent is $600 per week and is about to increase by 10% to $660, the additional cost would be $3,120 per year.</p>
<p>So is it cheaper to move or stay when your rent increases by 10%?</p>
<p>The answer is moving may save about $1,000 to $2,000, but comes with the hassle and emotional toll of relocation. Staying will be more expensive, but with less hassle and emotional strain.</p>
<p>The right choice depends on your situation.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/243155/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p>
<p><em><a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, Associate Professor of Marketing, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a> and <a href="https://theconversation.com/profiles/sara-quach-175976">Sara Quach</a>, Senior Lecturer in Marketing, <a href="https://theconversation.com/institutions/griffith-university-828">Griffith University</a></em></p>
<p><em>Image credits: Shutterstock </em></p>
<p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/to-move-or-not-to-move-is-it-cheaper-to-find-a-new-place-or-stay-when-your-rent-increases-by-10-243155">original article</a>.</em></p>
