Rental Crisis: Unending storm as tenants struggle to find homes
Brisbane’s rental storm shows no signs of ending as vacancy rates barely rise, according to the latest PropTrack Market Insight Report.
Brisbane’s rental storm shows no signs of ending as vacancy rates barely rise, according to the latest PropTrack Market Insight Report.
The report found despite Brisbane’s vacancy rate rising 0.03ppt in April, it remained at an exceptionally tight 1.02 per cent – the second lowest vacancy rate in the country.
Regional Queensland’s market has also tightened significantly with Cairns vacancy rate the lowest in the country.
It also states, the share of rental properties vacant and available in Brisbane is now 53 per cent lower compared to the start of the Covid pandemic in March 2020.
PropTrack Economist Anne Flaherty said unfortunately for Brisbane renters the vacancy rate is expected to remain low for the foreseeable future, with no end in sight.
MORE PROPERTY NEWS
“We have strong demand in Brisbane. The bottom line is construction of homes aren’t keeping up with the growing demand for homes,” Ms Flaherty said.
“One of the reasons we aren’t seeing this situation improve is because we need initiatives to support first homebuyer activity, to get them out of the rental market.
Regional Queensland’s rental market is also tighter than ever with Ms Flaherty saying it is equally as tight as the metro areas with baby boomers looking to regional areas in their retirement decade.
MORE: ‘Unforgettable’ art deco Brisbane home charms buyers
John McGrath rates his top real estate agents of 2024
“Regional Queensland has one of the lowest vacancy rates in the country,” she said.
“If you look at Cairns 0.55 per cent vacancy rate is lowest in the country and decreased further in the last month.”
While investors are selling up, exiting the rental market and homes occupied by rentals are going to owner occupiers Ms Flaherty said interest rates and property prices have played a key element to that.
“There are a number of factors contributing to investors selling up but Brisbane is now more expensive than Melbourne, that might be a factor reducing investment in the market.
“It’s clear the supply is insufficient to keep up with the demand.”
Partner and lead agent from Place Bulimba Paula Pearce said she thought the low vacancy rates were a positive sign that more people are wanting to move to Brisbane.
“The lifestyle is better up here and the value for money compared to Sydney and Melbourne is fantastic,” Ms Pearce said.
“Investors are wanting relief from the cost of living on their monthly expenses are being put in a position to sell and of course they’re getting good prices. That is what is taking property out of the rental market.
“Right now, it is very rare that you might see positive gearing on your investments. Investors can see if they put their money in other things they can get a better gain on something else.”
“I’ve never seen people so excited to get to Brisbane. The enthusiasm still there from the pandemic. The weather, laid back atmosphere and the lifestyle is incomparable.”
Originally published as Rental Crisis: Unending storm as tenants struggle to find homes