Housing crisis deepens as rents ‘explode’ and vacancies vanish in Brisbane

Capital city rents have “exploded” in the past year, rising almost 15 per cent in Brisbane while vacancies have plummeted, according to research company SQM.

Apr 13, 2022, updated Apr 13, 2022
Rents continue to increase as migrants return to Australia

Rents continue to increase as migrants return to Australia

In some parts of far north Queensland there were no properties to rent in March while the majority of the state had a vacancy rate around 0.5 per cent.

According to SQM, the national vacancy rate fell to 1 per cent in March when there were just 38,868 vacant rentals nationwide and the company warned the worst was yet to come and that homelessness was increasing.

In Brisbane, vacancies were worse than the national average at 0.7 per cent, half the rate of a year ago. The scarcity of properties adds to crisis in housing where now both renting and buying a property are out of reach for many people.

“The total number of vacancies Australia-wide now stands at 38,868 residential properties, down from 43,844 in February,” SQM said.

“Sydney, Melbourne and Brisbane vacancy rates fell to 1.6 per cent, 1.9 per cent and 0.7 per cent respectively.”

SQM said capital city asking rents for all dwellings were up 11.8 per cent on the year and 14.7 per cent for houses.

Brisbane’s rent increase was the highest nationally on a percentage basis.

The inner city is the only region in Queensland to have vacancies of about 1 per cent and that was likely to be the result of the loss of international students and people leaving the city during Covid.

In Melbourne, rents increased by 7 per cent in a month.

SQM’s Louis Christopher said the rental crisis had deepened.

“As a result, market rents have exploded. Some of our capital cities and regions are recording asking rental increases in excess of 15 per cent over the past 12 months,” he said.

“And the recent monthly data suggests we are still not at the worst point of the crisis.

“We were thinking that at least regional Australia may have started to have some relief as people return to the cities, but that has not happened as yet.

“Many localities and townships are recording zero vacancy rates.

“It is likely that homelessness will be increasing in this environment.”

He said both major parties had failed to address the issue and that state governments needed to ramp up their rental assistance.

The REIQ has tried to address the issue by campaigning for governments to provide incentives to allow holiday rentals to move into the permanent rental pool but in many cases these properties are not considered appropriate.

The issue in south east Queensland has also been impacted by the recent floods which forced people out of their homes and into rentals.

According to SQM Cairns’ vacancy rate was 0.6 per cent, central Queensland 0.4 per cent, East Gold Coast hinterland 0.6 per cent, Gold Coast 0.4 per cent, Inner Brisbane 1.1 per cent, Ipswich 0.5 per cent, north Queensland 0.8 per cent, Central Queensland coast 0.6 per cent, far north coast 0, Sunshine Coast .05 per cent and Toowoomba 0.3 per cent.








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