Australian household wealth rising as house prices and yields lift: RBA

Australian household net worth started rising in 2012 alongside a recovery in house prices in the later part of the year, graphs prepared by the RBA in its February monetary policy statement reveal.

The RBA also notes that residential vacancy rates remain relatively low at around 2%, contributing to rents growing faster than inflation and rising rental yields.

“Nationwide, rents are growing at an annual rate of around 4%. With rents growing faster than dwelling prices over the past year, nationwide gross rental yields have increased to 4.75% (and as high as 5.5% in Perth)."