Vacancy Rates Tighten

There appears to be no let-up in the rental market with new data showing that vacancy rates dropped again in February.

While the change was small – from 1.2% in January to 1.1% in February – the new figures reflect a very tight market across Australia.

SQM Research says there are 34,572 vacant rental dwellings nationwide.

In the capital city markets vacancy rates dropped in Sydney, Melbourne, Perth, Adelaide, Darwin and Hobart.

Hobart now has the lowest vacancy rate of 0.5%, followed closely by Brisbane and Darwin which are both 0.6%.

SQM Research managing director, Louis Christopher, says that while some seasonal tightening is expected at this time of year, demand for rental housing is clearly continuing to outstrip available supply.

“Vacancy rates below 1% in cities such as Brisbane, Perth and Darwin highlight just how constrained rental supply remains in parts of Australia,” he says.

“Without a meaningful lift in new housing supply and an easing in demand, rental pressures are likely to remain a feature of the market through much of 2026, which may feed into the CPI.”