Home Insights Tight rental markets continue to get worse for tenants

Tight rental markets continue to get worse for tenants

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New PropTrack rental vacancy data for March shows the market remains tight with vacancies below 1.5%.

The national rental vacancy rate is currently at 1.47%, the lowest level recorded well before the pandemic.

SYDNEY AUSTRALIA - NCA NewsWire PHOTOS MARCH 22, 2023: Dozens of Sydney Siders are seen lining up outside a rental flat open for inspection in Surry Hills. The rental crisis is one of the key issues in his NSW election in 2023.Photo: NCA NewsWire / Nicholas Eager

Desperate tenants are lining up for rental property inspections in a scene that is becoming increasingly common across Australia. Photo: Nicholas Eager/NCA

These conditions make it very difficult for renters to find homes and have led to significant rent increases, with rents increasing by more than 10% over the past year.

Adelaide and Perth have the lowest rental vacancy rates in the nation at under 1%.

These levels are very tight and available rentals are leased almost immediately. This makes it very difficult for renters to move where they want, putting more pressure on low-income renters.

Rental market conditions have tightened significantly in the capital markets, particularly Sydney and Melbourne, with vacancy rates falling 0.73 points and 1.38 points respectively over the past year.

Post-Corona, as cities reopened, universities resumed face-to-face learning, and strict borders were lifted, demand for urban living surged.

Compounding this is the pandemic shift towards smaller households, especially for renters, putting further pressure on the market.

In rural areas, rental conditions are slightly relaxed. Extremely tight since the outbreak of the pandemic, rental vacancies across the region have risen 0.4 percentage points over the past year.

Currently, it is more difficult to find rental properties in the capital than in the countryside.

With the city’s rental market showing no signs of slowing down, the coming months could be even more challenging, with strong rental growth continuing.

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