NAB’s Q2 survey of property professionals has revealed that 83% of respondents believe that the rental markets in their areas of operation are suffering from undersupply:
Source: NAB
As shown above, all major states are experiencing severe undersupply.
Specifically, 30% said the market was “extremely” undersupplied, 27% “very” undersupplied, 17% “quite” undersupplied and 13% “somewhat” undersupplied. Only 4% said market conditions were “neutral”, 3% “somewhat” oversupplied and 1% “quite” oversupplied in their area:
Source: NAB
NAB’s results come amid the near-record 11.5% capital city rental growth recorded by CoreLogic over the 2022-23 financial year:
Source: CoreLogic
CoreLogic has also recorded an unprecedented collapse in capital city rental listings, which are tracking at nearly half pre-pandemic levels:
Source: CoreLogic
Over the last 12 months, rental listings have fallen by 16.5% across the combined capital cities, with heavy falls recorded across Melbourne (-26.9%), Perth (-19.5%) and Sydney (-13.6%):
Source: CoreLogic
In turn, the rental vacancy rate has collapsed to critically low levels:
Source: CoreLogic
The rental crisis is certain to worsen, given that the federal budget forecast an increase in Australia’s population of 2.18 million persons in the five years to 2026-27, led by a record 1.5 million net overseas migration (NOM).
Thus, Australia’s population is forecast to grow by the equivalent of a Perth in only five years, with an Adelaide’s worth of people expected to arrive solely through NOM.
This population explosion is happening at the same time when actual housing development rates are falling:
The Albanese Government’s reckless extreme immigration program has only one possible outcome: ongoing rental market tightening, prolonged high rental inflation, and rising homelessness.
