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Where rental markets are showing signs of improvement

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Strong demand and supply shortages have pushed rental vacancy rates to record lows in many parts of the country, leading to sharp price increases in many parts of the country, but there are some signs of easing. You can see

Some pockets that were running red hot are starting to recover, and tenants have more options than they did a year ago.

It is very difficult to find a rental property these days.Photo: Getty

According to the latest data, only 1.6% of rental housing is vacant at the national level.

This is well below the 3.8% rental vacancy rate seen early in the Covid pandemic.

For Australians trying to find a home to lease, it’s a big deal.

The reasons why the rental market is so tight are complicated.

Part of the story is that rental supply has been impacted Exit of investors from the marketmany choose to sell their rental properties between 2020 and 2021, with few new investors replacing them.

On the other hand, rental demand strong for the last few years International students, immigrants and office workers have returned to the CBD in many parts of the country and are now burgeoning in urban centres.

This is evident in the 28% surge in the number of potential renters per listing in the capital since November 2021.

Rental competition is fierce across the country, but in some areas renters are beginning to feel somewhat at ease.

We looked at the year-over-year growth in rental vacancy rates within the SA3 region to identify where the market is showing signs of improvement. The SA3 region is an area geographically divided into populations between 30,000 and 130,000 using the Australian Bureau of Statistics criteria.

Of the 10 SA3 regions with the highest rate of vacancy growth, 80% are in rural areas.

This is not surprising given that the capital saw a 28% increase over the same period, while the provinces saw a 17% year-over-year decline in potential renters per listing.

Katherine in the Northern Territory, which topped the list, experienced a 2.13% rise in vacancy (up from 0.4% to 2.53%), while Berkeley’s vacancy rate in the adjacent SA3 area has increased by 1.27% over the past 12 months (from 2% to 3.27%).

In-depth insights from PropTrack’s team of experts:

Tenants in New South Wales’ Southern Highlands, Orange and rural Snowy Mountains had slightly more options than in the previous year, with rental vacancy rates up 1.87, 1.36 and 1.16 percentage points respectively. I’m here.

The Southern Highlands rental vacancy rate rose 1.87 points.Photo: Getty

Vacancy rates also increased in the Gold Coast Hinterland and Noosa Hinterland in Queensland.

After an accelerated regional shift over 2020-2021, lower vacancy rates and lower rental demand in the region suggest some Australians are returning to cities to work and study. increase.

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However, with demand remaining strong and supply shortages continuing to be a problem in the capital, rental conditions may remain tight for some time.

Rural vacancy rates are rising, and while tenant choice has improved slightly, they are still lower than they were a few years ago.

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