The outlook for Australia?s rental market is poor.
According to data from CoreLogic, the rental vacancy rate collapsed to just 1.3% across the country in July.
The number of properties listed for rent across the combined capital cities plummeted to around 40% less than were available for rent in July 2018 and July 2021.
Vacancy rates are plunging in Australia?s capital cities, with Sydney currently at 1.5% , Melbourne at 1.6%, while all others are 0.7% or lower according to SQM Research.
One big factor is that investors retreated from the market throughout the pandemic which meant a heap of rental property left the market.
Australia is now struggling to backfill, dwelling approvals have already fallen sharply, and this should continue amid rising interest rates and the various cost pressures afflicting the construction industry.