Queensland’s real estate boom has created a desperate shortage of rental houses

Dozens of southeast Queensland suburbs are running dangerously low on rental properties, with families the hardest hit.

Southeast Queensland’s rental crisis has hit unprecedented levels, with dozens of suburbs at risk of running out of properties and experts warning it’s only going to get worse.

The hardest-hit areas have been family-friendly suburbs within strong school catchments.

The dire situation has become more severe in recent months with the booming real estate market and a clampdown on investors meaning fewer houses are being bought to be let.

Archistar’s chief economist Dr Andrew Wilson says a lack of investors and interstate migration is has created a housing rental crisis. Picture: Doug Eaton

At The Gap and Seven Hills, there is just one house between them listed for rent, according to Archistar‘s latest data.

In Chelmer, there is one house for let; there are two houses in Gordon Park, Lutwyche, Nundah and Yeerongpilly; and three in each of the inner suburbs of Ascot, Wilston, Milton and Albion.

Archistar’s chief economist, Dr Andrew Wilson, said investors had not returned in strength since an APRA credit squeeze in 2016.

The rental housing shortage means families must move further out in the burbs or rent a residence that is not entirely suitable to their needs to remain in a specific suburb. Picture: Supplied

“It was across the board restrictions on investor finance and that's just continued,” he said.

“That’s meant we’ve got a lack of new supply, not new as newly built but new investor stock for rent, over the last three or four years because of restricted lending to investors.”

Dr Wilson blamed not just the lack of investors and new housing but also interstate migration for the rental crisis.

Victoria’s latest Covid lockdown was likely to be the catalyst for more Melburnians moving north, increasing rental demand and putting more upward pressure on rents and house prices.

“I think we haven't seen the end of the interstate migration factor,” Dr Wilson said.

Traditionally, one of the prime destinations for southerners has been the Gold Coast where there are more than a dozen suburbs with just one house available for rent.

Veteran Ray White Surfers Paradise real estate agent Andrew Bell says it’s baffling to know where all these people lived before the crisis. Picture: Jerad Williams

It’s a similar scenario on the Sunshine Coast and Ray White Surfers Paradise CEO Andrew Bell has been warning of the impending crisis for months.

His agency, with more than 600 properties on their books, is the biggest on the Gold Coast and he fears for families wanting to move to the area in search of a house to buy or rent.

“This is well ahead of anything I’ve seen in 44 years of being in the industry and it is a housing crisis and it’s quite baffling. Where were all these people living before all this demand?” Mr Bell said.

“Every time an investment property sells now it is tending to go to an owner-occupier, so it keeps reducing the pool of rental properties.

“The main cause is just demand and it continues to be people from outside the area wanting to move to the Gold Coast.”

Suburbtrends.com director Kent Lardner says SEQ is in the grip of a rental crisis and the end is nowhere in sight. Picture: Supplied

In May, the federal budget forecast Queensland’s population to swell by more than a quarter of a million over the next four years from interstate migration.

Market researcher Kent Lardner said the rental and housing crisis, in general, would have been far worse had there not been a pandemic.

He said even without any significant immigration for more than a year, the “crisis” had finally been exposed.

“This is one benefit of Covid, as it would have been significantly worse,” he said.

“There are just not enough properties coming on to the market year after year and the pandemic has pulled the curtains back for everyone to see.”

He said if all the government initiatives do not “ move the supply dial” then nothing will.

“It can only get worse,” he said.

There is not only a lack of houses for rent on the market, it’s the quality of the residences available as well, say experts. Picture: Supplied

“The lack of quality housing rental stock will mean families may have to realign where they want to live even if it means not being in the catchment area for their choice of public school.

He said they will have to be prepared to pay more to rent as landlords cash in on the lack of stock in sought after inner-Brisbane areas.

“We will see higher rent and that’s really reflecting the sudden surge of people coming into Brisbane,” he said.

“And it may be families not even getting the chance to pay higher rent as nothing is available and then they have to think about moving further west or north to be able to find something, not just something they can afford, but something they want to live in.”