- PropTrack Market Insight Report has been released revealing a very tight rental scene
- Only 1.47% of all rentals in Australia are currently available for lease
- PropTrack Senior Economist Paul Ryan says rent prices will continue to increase over 2023
Rental vacancy rates fell further in February, down 0.1 percentage points (ppt) to 1.47%, now at half the level seen before the pandemic according to the latest data released by PropTrack.
This figure means that less than 1.47% of all rental properties are available for lease.
Rates are currently at the lowest level since late 2018, reflecting just how scarce rentals are.
Rental vacancy rates
Those looking for rentals in capital cities will be feeling the pain in particular with vacancy rates falling 0.14ppt across the capitals in February to reach 1.43%.
PropTrack senior economist Paul Ryan explains that capital cities are experiencing rapid rental market tightening.
“It is now harder to find a rental in capital cities than in regional parts of the country for the first time since before the pandemic began,” he said.
Adelaide and Perth have the tightest rental markets with less than 1% of rentals currently available. Perth vacancy rates are 70% lower now than pre-pandemic levels.
Sydney and Melbourne’s rental markets have tightened considerably over the past year
following a resurgence in inner-city demand.
Melbourne rental vacancy rates have more than halved, down 1.8ppt to 1.4% in February. Sydney vacancy rates are down 1ppt, now at 1.7%.
Canberra is the only city to see a positive monthly change with vacancy increasing by a measly 0.02ppt.
“Lack of available supply will drive continued rapid rent price increases over 2023,” Mr Ryan said.
What about the regions?
All regions across the country, with the exception of the Northern Territory, have rental vacancy rates below 2%.
Mr Ryan explains that a vacancy rate below 2% indicates extremely tight conditions.
“Rental vacancy rates have fallen markedly over the past year, down 0.6 percentage points. This is a continuation of the trend seen since early 2021,” he said.
“With demand for rentals expected to remain strong, we see no reprieve for tenants in the coming months.”
Paul Ryan, PropTrack senior economisy
“The financial pressure renters across the country are already feeling will be exacerbated over the remainder of 2023.”
