SQM Research’s managing director, Louis Christopher, reported on Twitter that rental vacancies have hit an apparent “trend reversal” and are now falling:
Total rental listings update through to 26 June 2020. Looks like a trend reversal here. Numbers have been checked. It means we will likely record a fall in rental vacancy rates for June 2020…
We know rents have fallen, so one theory here is a movement down along the supply curve. Less weekly $$ rents = less landlords keen to rent at those lower levels. Unless they are forced to, of course.
It could also be that Airbnbs that were placed on the long-term rental markets after travel was banned have been placed back on the short-term holiday rental market as restrictions have eased.
Whatever the reason, it is an interesting development.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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