Expert warns that the rental crisis will continue for years,
Recent research indicates that Australia’s severe rental shortage is expected to persist for the foreseeable future.
The national rental vacancy rate currently stands at just 1.3 percent, with 35,425 rental properties in Australia currently unoccupied.
a healthy rental market is characterized by a vacancy rate of around 3 percent, which is double the current figure.
Increased vacancies allow renters more options when searching for new homes, ultimately leading to lower prices for tenants overall.
Adelaide has the tightest rental market in the country, with an alarming vacancy rate of only 0.6 percent.
Even Canberra, which has the most favorable vacancy rate, remains below the healthy threshold at 2.1 percent.
“Overall, the national rental market continues to face a severe shortage, and it’s not expected to improve significantly for years,” stated SQM managing director Louis Christopher.
However, it’s worth noting that conditions have slightly improved since last winter, when no capital city reported a vacancy rate above 2 percent.
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“I believe that the era of 10 to 20 percent annual rental increases is now over,” Christopher stated confidently.
“National rental vacancy rates experienced a slight decline in August, and we expect further decreases through the spring season,” he explained.
However, he added that this change is likely just seasonal, meaning we do not anticipate a significant increase in rents.
