Top 25 markets in rental drought

Suburbtrends has released a new report listing 25 markets with the tightest rental conditions.

The report, which covered the period spanning 12 months to January 2023, analysed suburbs and filtered out those that contained more than three vacant rental properties, had a vacancy rate of above 1.5%, and have household income levels in the upper 50% of the state.

The suburbs listed above met the following criteria:

• Incredibly low vacancy rates
• Household incomes below state average
• Weekly rents that are excessively high compared to incomes
• Low building approvals pipeline

Suburbtrends founder Kent Lardner said the findings of the report show how serious the rental crisis is in Australia.

“A significant number of suburban areas throughout Australia are experiencing a severe shortage of rental properties, with vacancy rates at historic lows and tenants facing difficulties in securing adequate housing,” he said.

Mr Lardner said the difference in rental conditions in upscale suburbs and in markets with low household incomes are day and night.

“Well-to-do renters in upscale suburbs benefit from a wider range of housing options, particularly given their ability to work remotely as many belong to the knowledge worker demographic,” he said.

"However, the situation is particularly dire for renters with low household incomes residing in socio-economically challenged communities, who face limited choices and significant difficulties in securing appropriate housing.”

Mr Lardner said there is a pressing need to address the shortage of rental properties not just in these 25 markets but also in other areas with tight conditions.

“While we acknowledge that finding a solution to this crisis is complex, we call on the Australian federal government to collaborate with state and territory governments to increase the supply of rental properties and alleviate this pressing issue,” he said.

—

Photo by Ivan Samkov from Pexels.