Australia’s Rental Market Update: Why Vacancy Rates Are Under 1% and What It Means for Renters and Investors

We’re thrilled to share that over the weekend, InvestorKit’s Founder and Head of Research, Arjun Paliwal, was featured on Australia’s leading morning program – Nine’s Weekend Today Show.

In this insightful segment, Arjun broke down what’s happening in the rental market right now.

Over the past five years, rents have jumped more than 45%, but that’s really just catching up from a slow decade prior (17% national growth).

Now we’re seeing early signs of a slowdown, driven by:

– Affordability concerns with a few areas

– New builds starting to hit the market in select pockets of our major cities

– Investor activity returning, especially in regional areas.

Some regions are still rising well above long term 3-6% averages, so the slowdown isn’t occurring everywhere

Other things we discussed were gaps between house and unit rents that are now closing.

Why?

👉 Units are in high demand lifestyle locations

👉 Unit approvals have dropped off since their 2015-17 peak in our major markets

👉 Recent projects are very different to what units used to have decades ago. Extra bells and whistles rising prices when today’s unit hit the market.

His advice to all renters: Be renter-ready, Stay flexible and Use data to find better-value suburbs

Consider investing strategically as a rentvestor too.

The market’s shifting. Data gives you the edge.

Catch the full interview below and hear Arjun’s expert insight – including practical tips on what you can do now to prepare, regardless of whether rate cuts eventuate.

Footage from Today provided courtesy of Nine Network Australia Pty Ltd.