Rental Vacancies Ease, But Prices Still Rising

The national rental vacancy rate rose for the third month in a row in May, reaching its highest level in 10 months.

PropTrack’s Market Insight Report found the rental vacancy rate increased by 0.08 percentage points to 1.3 per cent in May, with more choice for renters in all capitals except Hobart and Darwin.

That’s the highest rental vacancy rate since last year.

But PropTrack senior economist Paul Ryan, who authored the report, warned rents were likely to continue to rise. 

“While any easing in conditions will be welcomed by renters, available properties remain very scarce with the vacancy rate at around half the levels seen before the pandemic,” Ryan said.

“This means competition for rentals will remain strong and rents will continue to increase.”

Canberra saw the biggest increase in rental vacancy rates in May, up 0.18 percentage points, with Sydney close behind, rising 0.16 percentage points. 

Rental vacancy rates, May 2024

▲ Source: PropTrack Market Insights

“The easing in conditions over the past three months has been most evident in Perth, Sydney and the ACT, with Perth seeing a substantial improvement after very tough conditions recently,” Ryan said.

He said while availability remained low across all markets, Adelaide and Brisbane are the toughest cities for renters, with rental vacancy rates of 1.03 per cent and 1.11 per cent respectively. 

“We expect renters will face continued difficulty securing rentals and strong rent growth over the rest of 2024 in these markets.”

Regional markets showed a modest rise, up 0.02 percentage points, compared with the capital cities, and maintained a lower rate of vacancy at 1.26 per cent.