Rents are skyrocketing, with tenants struggling to find accommodation

If you want to understand just how much property investors are controlling the rental market right now, consider this stat: during the month of March, only 1 out of every 100 rental properties across Australia was vacant, according to SQM Research.

 

While the national vacancy rate was 1.0%, it was even lower in some capital cities:

 

● Perth = 0.5%

● Adelaide = 0.5%

● Brisbane = 1.0%

● Sydney = 1.1%

● Melbourne = 1.1%

● Hobart = 1.3%

● Darwin = 1.4%

● Canberra = 1.6%

 

To put that into perspective, a rental market is considered favourable to investors when the vacancy rate is below 2%; favourable to tenants when it’s above 3%; and neutral when it’s between those two benchmarks.

 

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And vacancy rates show no sign of increasing, because the population is growing strongly while the amount of rental housing is growing only modestly. In other words, demand is outstripping supply.

 

As a result, rental listings are attracting lots of tenant enquiries, and investors are finding it easy to fill their properties and justify rent increases. Rents across the country have jumped 9.4% over the past year, according to SQM.

 

Rents are likely to keep increasing while vacancy rates remain at such incredibly low levels.

 

Want to buy an investment property ? Click here to book an appointment with Ivan Kaye.

Click here to book an appointment with Ivan Kaye.