The revelation comes after a North Sydney Council meeting descended into chaos as residents reacted to the passage of a motion to increase rates by almost 100 per cent over two years.

ABS data analysed by Money.com.au shows property rates have increased by a massive 39 per cent nationally over the past decade, comfortably outpacing inflation.

In 2024 alone, property rates and charges increased 4.9 per cent nationally, more than almost any other housing-related expense, with the only exception being the cost of rent.

Property expert Mansour Soltani from Money.com.au said surging rates were now acting as a “silent mortgage” that meant homeowners were unable to shop around or renegotiate.

“Rising property rates coupled with high interest rates on mortgages have created a double financial squeeze, making homeownership increasingly unaffordable for many Australians,” Mr Soltani said.

“Our recent survey found that 18 per cent of Aussies ranked council rates as their most dreaded bill, placing them ahead of insurance premiums and childcare costs.

“This highlights just how much of a financial strain they’ve become for homeowners.”

Canberra was by far the worst-hit capital city in terms of rate increases, which have risen 83 per cent over the past 10 years. This was followed by Hobart and Brisbane, which saw 46 and 43 per cent increases respectively.

The rate increases across Melbourne were in line with the national average of 39 per cent, with Perth at 37 per cent and Sydney councils averaging 35 per cent. Increases for Adelaide and Darwin were 32 and 31 per cent respectively over the same period.

However, all of these increases pale in significance to the 87 per cent increase North Sydney residents will see over the next two years.

The increase has been attributed to cost blowouts that have occurred with the council’s redevelopment of the famous Olympic pool.

The project was initially costed at around $30 million, but this has now ballooned to a massive $122.2 million.

Liberal Councillor Jess Keen disputed this justification on Tuesday, telling SkyNews.com.au that the rate increase was expected to bring in an additional $558 million in incremental revenue but just $50 million was set to go to the pool’s redevelopment.

The proposed special rate variation (SRV) will see a 45 per cent increase for the 2025-26 financial year and a 29 per cent increase for the 2026-27 financial year, with the "cumulative impact" being an 87.05 increase over two years.

Shocked locals only found out about the increase two weeks before it was passed by the council, with Ms Keen revealing people had come to her in tears not knowing how they would be able to “make ends meet”.

The Liberal councillor said an 'ability to pay' study had previously been conducted which showed that 43 per cent of North Sydney residents were "at risk", meaning pensioners, single-parent families, and those who live alone the most could be most affected by the increase.