As we all know, Australia’s population increased by 660,000 in the year to September 2023, driven by net overseas migration of 549,000.
![Australian population change](https://api.macrobusiness.com.au/wp-content/uploads/2024/03/Figure-1.png)
However, throughout the same period, we constructed only 155,600 dwellings (net of demolitions), which means we created just one home for every 4.24 new residents.
![Rental vacancy rates](https://api.macrobusiness.com.au/wp-content/uploads/2024/03/rental-vacancy-rates.png)
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This explains why the nation’s rental vacancy rate has dropped to a historic low of around 1%, while rentals have risen by 38% since the beginning of the pandemic.
![Median advertised rents](https://api.macrobusiness.com.au/wp-content/uploads/2024/03/PropTrack-median-advertised-rents.png)