Australia's increasingly dire rental market: A snapshot in five charts

Experts predict rents will continue to climb in many parts of the country as supply of rental properties across the nation hits ten-year low.

New research shows 1.1 per cent of properties across the country are vacant, a record low, as the total number of new listings dropped in 2023. Source: AAP / Bianca De Marchi

New data reveals Australia's rental market is facing a chronic supply shortage, especially in the nation's capital cities.

A PropTrack Rental Report released on Monday shows the number of new rentals available in September was at a ten-year low, dropping 5.7 per cent since last year.

Residents in capital cities faced the largest drop in new property listings, with declines of 20.2 per cent in Melbourne, 12.2 per cent in Sydney and 8.3 per cent in Perth, compared to September 2022.

Meanwhile, migration has increased competition for the limited housing stock available, as the nation's population grew by 563,205 over the last 12 months.

The scramble to get a property has also impacted prices, with city renters paying $550 a week on average — roughly $70, or 14.6 per cent, more than this time last year.

However, residents in Hobart and Canberra got some price relief, with rents respectively 7.4 per cent and 3.2 per cent lower over the September quarter.

For those hoping to buy their first home, high rents have made saving for a deposit harder while inflation, which is at an annual rate of 5.4 per cent, has reduced their capacity to borrow.

Cameron Kusher, PropTrack's director of economic research and report author, said the situation would not ease unless more homes are built.

“From here, we expect rents will continue to climb in the major capital cities due to persistent low supply and strong demand," he said.

"Outside of the major capital cities, we expect rental price growth to continue to slow, the availability of stock for rent to ease further and vacancy rates to start drifting higher.

“These conditions highlight why it is so important to build more housing … Additionally, first-time buyers should be supported into homeownership, freeing up the rental stock they currently occupy.”