Rental Crisis Deepens as National Vacancy Rate Hits Record Low in Australia
The rental crisis in Australia has reached unprecedented levels, with the national vacancy rate hitting a record low, making it tougher than ever for renters to find a new home. According to new data from PropTrack, the national vacancy rate dropped to 1.07% in February, marking a significant decline since the start of the pandemic, with available rental homes plummeting by 60% since March 2020.
PropTrack senior economist Paul Ryan noted that rental markets across the country were proving extremely challenging for renters, with Sydney and Melbourne experiencing notably larger declines in vacancy rates compared to other capitals. Cities like Brisbane, Adelaide, and Perth are also facing extremely tight rental market conditions, with vacancy rates below 1%.
The increasing scarcity of rental properties has led to fierce competition among renters, driving up rents and further straining rental affordability, which is currently at its worst level in at least 17 years. Tenants’ Union NSW chief executive Leo Patterson Ross highlighted that more renters were experiencing rental stress, with some resorting to sleeping in cars or tents due to escalating rent prices and limited housing options.
Open home inspections have become a battleground for hopeful tenants, with long lines seen snaking out onto the streets as renters try everything to secure housing in a highly competitive market. Some tenants are even opting for longer-term leases or considering buying a home to secure a permanent place to live, as the struggle to find rental accommodation persists.
While tenants are actively seeking out longer leases to avoid the uncertainty of having to relocate in a tough rental market, property managers like Ray White’s Elizabeth Foster have noticed a surge in attendance at open home inspections, indicating the high demand for rental properties. With vacancy rates at an all-time low and rental affordability at a crisis point, renters are facing a challenging and uncertain housing market, leaving many vulnerable and uncertain about their future housing security.
