Rental availability shrinks to decade low

Rental prices are rising as tenants are forced to compete for the few housing options available, according to new data from SQM Research.

A healthy vacancy level sits at 3 per cent. Picture: NCA NewsWire/Joel Carrett

Housing tenants are facing the hardest market to find a home in a decade which has forced asking rental prices to surge, according to new data from SQM Research

The national rental vacancy rate fell to a low of 1.7 per cent over June, the lowest since May 2011. The number of available properties across the country now stands at 60,457, down from the 62,144 properties (0.1 per cent change) recorded in May.

Nationally, rents have risen across the country as a result, up 15.1 per cent for houses and 6.6 per cent for units over the year, fuelled by regional locations. This has caused capital city average asking rents to rise more quickly largely across the board. Houses now commanded 1.8 per cent more on average per week ($575 per week) over the month to 12 July, while units were up an additional 1.7 per cent per week to an average of $419.

Much of the pressure on rental availability within state capitals is being placed upon the smaller cities. Only 0.4 per cent of rental housing in Hobart and Darwin is currently on offer, with the cities of Adelaide (0.6 per cent), Canberra (0.7 per cent), Perth (0.9 per cent) and Brisbane (1.3 per cent) also tight. A range of regional locations recorded a moderate rise in availability.

Vacancy rates fell again in Sydney and Melbourne to 2.8 per cent and 3.5 per cent respectively, representing a return towards more longer term levels.

SQM managing director Louis Christopher said the rental crisis is being elicited in some parts of the country and exacerbated in others.

“Rental vacancy rates have fallen in our largest capital cities,” Mr Christopher said.

“Meanwhile there was some further evidence that we have reached the high point in regional occupancy and some relief for local renters may be coming later this year, notwithstanding Sydney’s latest lockdown.

“Rents are now accelerating in our larger capital cities which may have ramifications for the CPI read in the coming quarters.”

A healthy vacancy level sits at 3 per cent.