More People = Fewer Vacancies

Vacancy rates tightened further in March with just over 31,000 properties available for rent throughout the country.

SQM Research data shows the national vacancy rate fell to just 1% – down from 1.1% in February.

Managing director Louis Christopher says the imbalance between supply and demand continues.

“Without a significant increase in new housing supply or stabilisation of population growth rates, it is likely that rental pressures will remain elevated throughout 2026,” he says.

Data from the Australian Bureau of Statistics shows there were more than 3400 people per day arriving in Australia in February.

Vacancy rates are tightest at just 0.4% in Darwin and Hobart, followed by Perth at just 0.5%.

Melbourne has the highest vacancy rate, although it is still a very tight 1.4%, which is well below the 3% considered to represent a balanced rental market.

The Housing Industry Association is warning that the increase in demand for houses – which predominantly comes about from migration – will exceed the supply of homes every year for the next five years, leading to a shortage of rental properties.