Earlier this month, PropTrack released its quarterly rental report, which showed that the number of homes listed for rent across Australia fell to a record low in December after declining 4.7% year-on-year.
The total number of properties available for rent nationally in December 2023 was 30.2% below the December decade average, according to PropTrack:
Source: PropTrack
PropTrack’s rental vacancy rate for January was released on Wednesday, which fell to just 1.09% nationally, and 1.08% across the combined capital cities:
Source: PropTrack
As shown above, vacancy rates nationally have fallen by 54% since the beginning of the pandemic, driven by the major capital cities.
“Vacancy across the combined capital city areas was at the second lowest level on record in January, driven by a particularly sharp drop in availability in Sydney”, PropTrack notes.
“The share of rental properties sitting vacant has been trending down for three years, from 3% in April 2020 to just 1.09% in January 2024″.
“There are now 54% fewer homes sitting vacant compared to the onset of the pandemic”.
Reflecting the dearth of rental vacancies, median rents have surged, led by the capital cities:
Source: PropTrack
This growth in rents has been driven by Perth (+20%), Melbourne (+18.3%) and Sydney (+16.7%), which soared in the 2023 calendar year:
Source: PropTrack
This broadly matches the surge in net overseas migration, which has had an over-sized impact on these three markets:
Commenting on the results, PropTrack economist and report author, Anne Flaherty, warned that “the trend is a result of population growth outpacing the speed at which new housing is being developed”.
“With dwelling approvals and commencements at decade-low levels, this is unlikely to change anytime soon”.
“With few rental properties currently vacant, tenants are facing stiff competition. This is likely to drive rents higher over the course of 2024, though we expect the pace of growth to slow”.
Australian renters are caught in a ‘population trap’, with supply unable to keep up with demand.
The solution is to slash immigration to a level below the nation’s ability to supply housing and infrastructure while also safeguarding the natural environment.
