*Note: This article draws information from recent rental news on realestate.com.au, which can be be found here https://www.realestate.com.au/news/some-relief-for-renters-as-vacancy-rates-edge-higher/
Data compiled by PropTrack indicates a marginal increase of 0.05 percent in the availability of rental properties nationwide in December, bringing the vacancy rate to 1.12%. However, the broader picture reveals a 0.13 percent decrease in vacancy rates over the entirety of the past year, signalling that renters may still encounter challenges in 2024.
In an ideal rental market scenario, a vacancy rate of 2-3% is preferred, and we are currently below this threshold.
The persistent scarcity of available rentals intensifies competition among renters, leading to a substantial portion of their income being allocated to rent. This strain on household budgets affects expenditures on utilities, food, entertainment, and more, especially as we witness sustained elevated levels of inflation, translating to decreased purchasing power.
As long as the rental market remains highly competitive, the trend of price growth is likely to persist – a trend that has shown no signs of abating since the onset of the COVID-19 pandemic in 2020.
The current tight rental market dynamic has prompted more renters to explore shared housing arrangement, contributing to an increase in the average number of occupants per household. While this approach helps mitigate the scarcity of available rentals, it’s not the optimal solution for many, often arising from being priced out of the market
According to Flatmates.com.au, a prominent share accommodation platform, 2023 witnessed an impressive 22% surge in new members and a substantial 35% rise in new property listings. Despite December traditionally being a quieter month for the platform, the notable increase in new members and listings signals a bustling summer ahead.
Despite the challenging conditions for renters, the outlook suggests a shift. While 2024 may not herald an era of ease, indications point toward conditions stabilising. Rental prices might see slower growth compared to the past year, providing a glimmer of relief for those navigating the rental landscape.
