The rental shortage is set to linger as the national vacancy rate in July dropped to 1.3%. It is forecasted by SQM Research that this is unlikely to change anytime soon.
The rental shortage is likely due to 2 major factors:
- A rapid increase in population.
- Fewer new homes are completed in 2023 compared to 2022.
SQM managing director Louis Christopher said. “Australia currently has, by far, the fastest growing population for any OECD country and clearly the rampant increases are currently breaching the country’s capacity to house all our people.”
“Clearly, acute rental shortages remain with us. And besides more people grouping together to share the burden, there is no significant solution on the horizon,” Louis Christopher said.
The ongoing rental shortage which is set to linger is good news to property investors in much of Australia. They are enjoying very low vacancy rates due to very few untenanted rental properties right now. That makes it relatively easy for investors to find tenants and means renters will often accept higher rents to secure accommodation.
If you are looking to dive into real estate investing, it is worth it to invest in rental properties now. Contact us and we’ll be happy to discuss your plans.