Rental availability is low but the tide may be turning

Rental availability is low but the tide may be turning - realestate.com.au
Menu
Buy
Rent
Sold
Share
New homes
Find agents
Lifestyle
News
Commercial
Buy
Rent
Sold
New Homes
Find Agents
Suburb profiles
Share
News
Lifestyle
Commercial
News
Insights
Guides
Lifestyle
Video
Insights
Rental availability is low but the tide may be turning
Megan Lieu, Senior Economic Analyst at REA Group
Updated 21 Nov 2025, 3:00pm
First published 21 Nov 2025, 3:01pm
Add as a preferred source on Google
Rental vacancy rates have been declining since June , tightening competition in the market and making it increasingly difficult for prospective tenants to secure a home.
However, new data shows that trends may be shifting, with early signs of improving availability.
According to new data from PropTrack, national vacancy rates were 1.4% in October after a 0.25 percentage point (ppt) increase from September. They are currently the highest they have been since December 2024 and are now above the 3-year average.
The largest increases were seen in Darwin, Brisbane, regional Queensland and regional South Australia where vacancies rose by 0.40ppt, 0.35ppt, 0.36ppt and 0.32ppt, respectively.
This reflects a modest uptick in the number of properties available for rent which will be welcome relief for renters, especially those in Brisbane and regional Queensland, where vacancies remain among the lowest in the country at under 1%.
Vacancy rates have been at historical lows for several years as a result of strong migration, as well as shortages and delays in new housing construction. Interest rate rises from mid-2022 to late 2023 made property purchases less attractive for investors during that period which also affected the supply of rentals in the market in recent years.
Source: PropTrack
However, data on the lending market suggests that the trends are changing which is likely to improve rental availability.
Investor loans are at their highest levels since 2015
While vacancies may vary from month-to-month, investor activity has been trending upward and has seen a strong uptick, particularly this year. In the past 12 months, loans to investors have increased by 13% and they now make up 41% of all new home loans. This is the highest share since mid-2015, before APRA's tighter lending standards were implemented .
South Australia and the Northern Territory have hit an all-time high for the share of investor loans, with Queensland and Western Australia nearing peaks, and New South Wales at its strongest level since 2017.
This year's interest rate cuts, as well as high rent prices and limited rental availability, are considered key drivers of the surge in investor property purchases. Increased borrowing capacity and high rental yields have made property investing more appealing.
Source: PropTrack, ABS
The surge in investors is positive news for renters as it reflects growth in the supply of rental listings and potentially less competition in the market.
Early signs of this are already emerging in the market, with new rental listings up 2.6% in Queensland and 13.5% in South Australia over the past year.
Vacancy rates are still around half of what they were pre-COVID
While these trends hint at a potential improvement in the rental market, they will need to persist for some time before having a significant impact.
Australia's national vacancy rate was 1.4% in October, the highest it's been since December 2024. Picture: Getty
Generally, a balanced and healthy rental market is characterised by a vacancy rate of around 3%.
Though vacancies were around 2.4% in 2019, availability was more than double of what it is today.
With rental turnover remaining relatively stable , according to the ABS, the persistent shortage in new home construction is likely to keep pressure on supply, while strong population growth continues to drive demand.
As a result, any meaningful easing of rental market pressures is expected to take time, dependent on sustained improvements in supply and a moderation of demand growth.
Help us improve your reading experience
Got a minute? Your feedback will help us build a better experience for you.
Take our 1 minute survey
related tags
Featured
Renting
Other Sites
Selling Guide
Neighbourhoods
Auction Results
Commercial News
The Block 2025 Winners
The Block 2026 location in Mt Eliza
Home Loans
Home Loan Calculators
Mortgage Calculator
Stamp Duty Calculator
Home Loan Rates
Disclaimer: The information published in this section is of a general nature only and does not consider your personal objectives, financial situation or particular needs. Where indicated, third parties have written and supplied the content and we are not responsible for it. We make no warranty as to the accuracy, completeness or reliability of the information, nor do we accept any liability or responsibility arising in any way from omissions or errors contained in the content. We do not recommend sponsored lenders or loan products and we cannot introduce you to sponsored lenders. We strongly recommend that you obtain independent advice before you act on the content.
Facebook
Twitter
Pinterest
LinkedIn
YouTube
Advertise with us
Contact us
Ignite
Agent admin
Media sales
Legal
Privacy settings
Privacy centre
Site map
Careers
REA Group corporate website
International sites
Partner sites
International sites:
India
United States
International properties
Partner sites:
news.com.au
foxsports.com.au
Mansion Global
askizzy.org.au
realestate.com.au is owned and operated by ASX-listed REA Group Ltd (REA:ASX) © REA Group Ltd. By accessing or using our platform, you agree to our Terms of Use.

Text scraped from the landing page for research purposes. © respective owners. This text is sourced from the advertiser's public landing page; for removal, contact dmca@luba.media.