Why Vacancy Rates Are Under 1% and What It Means

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.