Rental crisis sweeps from coast-to-coast across Australia

CoreLogic’s latest rental listings report, released yesterday, shows that rental supply continues to plummet, with listings across the nation’s capital cities down by around one-third from pre-pandemic levels:

Australian rental listings

Australian rental listings have plummeted over the pandemic.

As shown above, the last time Australia’s rental listings were this low was 2014 when Australia’s population was around 10% smaller.

The next chart shows that listings have fallen across every capital city market over the past year, with the five majors posting the biggest declines:

Annual change in rental listings

Rental listings fall from coast-to-coast.

Not surprisingly, Australian rental growth remains turbo-charged, rocketing by 3.0% over the May quarter and by 9.3% annually, with regional rents (10.8%) growing even stronger than the capital cities (8.8%):

Australian rental growth

Australian rental growth almost universally strong.

This month’s rental report from SQM Research also showed that Australia’s capital rental vacancy rate plunged to its lowest level in 16 years of records:

Vacancy rates time series

SQM Research: Lowest rental vacancy rate on record.

Meanwhile, SQM’s asking rents index index rocketed by 2% in May to be a whopping 15.6% higher year-on-year across the combined capital cities.

The planned rebooting of the ‘Big Australia’ mass immigration program will obviously add to the rental squeeze, especially across the key migrant landing points of Sydney and Melbourne.

Where will all of the new Australians live when there is already an acute shortage of rental homes across the nation?

Unconventional Economist
Latest posts by Unconventional Economist (see all)

Comments

  1. SkepticviewerMEMBER

    Where will all those imported cheap labour live – Is anyone familiar with opening a tin of sardines. The local same type landlords will rent out beds in rooms four to a room or more at 250 a bed that’s 12 + to a three br house maybe another 8 in the lounge.- hot bedding can increase that number. Free public hospital down the road. SO bl**dy good. I don’t see any problems here in fact step up immigration from the 800K to 2 mill per year. *800k + or – when students grannies and illegals are added. A dry country can never have enough people look at Egypt a master success in population growth. And the fragmentation of standards in the form of Diversity leads to greatness – so we have been trained to vomit that line out when anyone asks, its a win-win all the way for those that matter Disclaimer those that matter (does not include resident working population or Women) — man that cool-aid is good.

    • Really? Never mind ‘my great eon’ ($)
      Plenty of folk dying right now or well on their way.
      Vex knock on effects doing their thing.
      Only blind or wilfully ignorant don’t see massive increase in ambulance activity on the roads lights flashing, sirens wailing back & firth to hospital all day. They are like a rash on the roads…not unlike the increase in shingles & my oh (NO carditis & did somebody say..’take a shot…get a cl0t for the greater good but not your own.
      One million empty houses according to 2022 sense suss. Coupled with ‘effective’ sh0ts b00mers as you mockingly call them, and many others will soon be gone from the face of the earth
      TTT I’m a little tea cup short & stout, tip me over pour me out. 777

  2. Should this rental issue ease as more people holiday overseas and Airbnb rentals become less viable in Australia (more housing stock returned to traditional rentals). Or is inflation to cause more domestic holiday taking?

  3. That’s not what I’m seeing in Elwood , St Kilda Vic. Heaps of rental stock in the market, over 50% more than pre covid. Prices lower as well.

  4. I am not sure what is driving the demand for new rental as immigration still remains low.In my area of South East Melbourne I am seeing rental sitting on the market for weeks with the sign rent reduced!

    • South west Melbourne regional industrial ‘town’
      3 bedroom clapped out 50 something weatherboard or brick family home advertised $360 – $420 per week 80 plus at inspection. Desperation is palpable.. real life, bloodless version of Hunger Games AKA Housing Games. 3 bedroom $480 plus per week (most tired look like dumps: bathroom stripped, painted Arctic white on white on white, gas heater to be removed before lease, shed and or sunroom and or garage NOT included in lease, carpet stripped to bare boards, windows stripped & covered cheap Bunnings blinds, no laundry & subtle damp smell…garden stripped to soil there fire no shade or privacy etc. sitting on market for weeks. Agents & owners now prefer share house all tenants on lease so minimum 3 wages to siupport rent payment. So sad too bad for families & single folk ..actually f em, their own fault cos never got a mort gage & expected Mum& dad investors to do all the heavy lifting & provide / give them with a home

  5. blindjusticeMEMBER

    Taking the national average rental increase and applying it to paycalculator com au to net income equates to a 4 and a half thousand pay decrease in gross annual income. Do the same for mortgage holders. Do the same for groceries and fuel.

    Its equivalent to a huge pay cut.

  6. Big jump in offshore student apps in May22. 35537 compared to 25046 in April22. Rental crisis is only going to get worse but politicians and msm don’t seem to care.