Rental vacancy hits all time low

By |

Australia's average rental vacancy rates fell to an all time low of 1.9% over the past two and a half years, according to a report by Mortgage Choice/REIA Real Estate Market Facts.

Vacancy rates lower than 3.0% are considered indicative of an undersupply of rental accommodation.

REIA president Noel Dyett blamed strong population growth across the country as one of the key drivers of this chronic tightness in the market. Construction of new dwellings also continued to lag well behind demand as investors held back amid the threat of another rate rise.

"As a result of very tight vacancy rates, over the past year rents have increased significantly right across Australia," said Dyett.

"Increasing house prices and declining home loan affordability are keeping more people in the rental market, with the short-term outlook difficult for lower income earners in particular."

The most expensive rental location is Darwin, with a 34.4% annual increase in median rent for a three-bedroom house to $440 per week, and a 51.1% annual increase for two-bedroom dwellings, bringing the median rent up to $340 per week.

Adelaide has the cheapest rental units, at $255 per week for a three-bedroom house and $205 per week for a two-bedroom dwelling, although these average rental rates also increased by 8.5% and 7.9% respectively.

The outlook for renters is positive, according to Dyett, with a "slowdown in rent increases" on the horizon.

"Over the medium term, there should be an improvement in vacancy rates, and a slowdown in rent increases, as improved yields make it more attractive for investors to place their funds in the property market," Dyett said.

Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : tweed heads south , woolloongabba , midland , berala , north epping

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here