CoreLogic has released data on Australia’s rental market, which shows a national disaster in the making.
Annual rental growth reaccelerated to 10.2% in November, led by the five major capital cities:
This rental hyperinflation follows a sharp reduction in vacancy rates, which more than halved over the 12 months to November, from 2.1% nationally to just 1.0%:
As shown above, the capital cities have experienced the biggest reduction in vacancy rates, plunging from 2.4% a year earlier to 1.0%.
This decline in rental vacancies has been caused by a sharp drop in rental listings, which fell 29.2% across the combined capital cities, with Melbourne (-35.1%), Sydney (-29.0%) and Brisbane (-26.8%) experiencing the biggest annual falls:
The rental situation is likely to worsen next year given net international student arrivals have already rebounded to record levels, suggesting that Australia’s net overseas migration will hit all-time high levels in 2023:
The Albanese Government has also committed to eliminating the so-called “one million visa backlog” as quickly as possible.
Where will these migrants live when there is already a dire shortage of rental accommodation?
The inevitable result of Labor’s extreme mass immigration policy will be even more severe rental shortages, skyrocketing rents, and rising homelessness.
Australia’s rental market is a national disaster in the making.
