Rental Vacancy Data

Rental Vacancy Holds at 1.2 % — What It Means for Home Buyers & Investors

The latest figures show that Australia’s national residential rental vacancy rate remains at a very tight 1.2 %. A vacancy rate that low signals a serious imbalance between rental demand and supply — and this has a few implications you should know whether you’re a home-buyer, investor or considering a refinance.

What the data reveals

• With only around 37,742 dwellings vacant nationwide, competition for rentals remains fierce. 

• Capital city markets are particularly tight for example, Sydney’s vacancy rate fell to 1.4 % from 1.5 % year-on-year.

• Stable or falling vacancies mean landlords can be more selective and rental prices are under upward pressure.

  
  

What it means for you

• If you’re a first home buyer, the tight rental market may make owning look more attractive than renting long-term — but be aware that strong demand may also drive up purchase prices and competition.

• If you’re an investor, this environment offers an opportunity: strong rental demand supports yields, but you will also face higher entry costs and perhaps elevated purchase prices.

• If you’re refinancing or taking on a new loan, lenders will still consider rental yield prospects if the property is investment-oriented — so make sure your serviceability and strategy account for this rental tightness.

  
  

Key takeaway

 The rental market is lean. This gives current property owners and investors an advantage, but it also means first-home buyers need to move with clarity and speed. With supply so constrained, acting at the right time, with the right loan, could make a material difference.