After a rise in rental supply from early to mid-2024, available rentals are decreasing again.
Where are rentals increasingly difficult to find? :
Securing a rental home is challenging across the nation. However, renters in specific regions face even greater difficulties due to significant supply reductions compared to last year.
According to PropTrack’s recent market insight, national vacancy rates decreased by 0.06 percentage points in September, reaching 1.34%. This decline marks the third consecutive month of falling rates, indicating a further tightening of rental supply.
Additionally, vacancies have dropped by 0.10 percentage points over the past quarter. Furthermore, there was a decrease of 0.06 percentage points within just one month.
This recent trend is unwelcome news for renters who have seen little relief from the ongoing challenges in the market.
While vacancy rates are currently 0.13 percentage points higher than they were a year ago in September 2023, some regions have experienced significant tightening in conditions.
Examining the SA3 regions with the largest annual decreases in vacancy rates reveals the areas most affected by reduced rental supply.
Areas with the biggest drops in empty homes.
| Region (SA3) | State | Current vacancy rate | Annual change |
| Noosa | QLD | 1.24% | -2.37ppt |
| Darwin Suburbs | NT | 0.65% | -1.45ppt |
| East Pilbara | WA | 4.79% | -1.39ppt |
| Hobart Inner | TAS | 0.83% | -1.25ppt |
| Outback – North | QLD | 2.11% | -1.1ppt |
| Armidale | NSW | 1.98% | -0.99ppt |
| Southern Highlands | NSW | 1.74% | -0.94ppt |
| Clarence Valley | NSW | 0.69% | -0.88ppt |
| Gippsland – South West | VIC | 1.38% | -0.76ppt |
| Bendigo | VIC | 1.09% | -0.75ppt |
The number of available rental properties has decreased significantly in the Darwin suburbs and Noosa regions recently.
Currently, vacancies are about one-third of what they were in October 2023, indicating a sharp decline.
Additionally, rental vacancies have also dropped considerably in the East Pilbara and Inner Hobart regions.
In East Pilbara, only 4.79% of properties are vacant, while in Inner Hobart, just 0.83% remain unoccupied.
Furthermore, the Outback-North and Armidale regions have also seen a significant decline in rental supply.
Among the locations with the largest decreases, most are found in regional areas, which is noteworthy.
This trend is not surprising, as these areas typically have lower vacancy rates than capital cities.
Moreover, they have experienced larger declines in vacant properties compared to urban areas, which is important to consider.
Currently, only 1.12% of properties in regional areas are available for rent.
In our cities, this number stands at 1.43%, following recent declines in vacancy rates.
Specifically, regional areas saw a decline of 0.21 percentage points, while cities experienced a drop of 0.05 percentage points.
Looking ahead, we expect the rental market to remain tight for the foreseeable future.
This is due to a lack of meaningful supply growth, coupled with high levels of demand in the market.
If these conditions persist, the gap between capital cities and regional markets may continue to widen.
This could lead to further challenges in regional areas, affecting renters and landlords alike.
