National rental vacancy rates are currently sitting at 1.2% in June, well below the pre-Covid decade average of 3.3%.
The Real Estate Institute of Australia classifies a healthy benchmark at 3%, and anything below suggests a tight rental market where demand outstrips supply.
In June 2023, all capital cities sat below this healthy threshold. Adelaide and Perth hold the tightest rental markets, with vacancy rates of 0.4% and 0.7% respectively.
To provide a helping hand to renters, PRD’s Affordable and Liveable Rental Guide 2023 has identified ‘key suburbs’ in each capital city with the most potential for renters.
The analysis considered suburbs with a lower median rental price compared to the relevant capital, as well as those with a high level of incoming rental stock.
PRD Chief Economist Diaswati Mardiasmo said identifying affordable and liveable suburbs in Hobart, Adelaide, and Perth proved difficult.
“Finding suburbs with a more affordable rental price alongside a high confirmed number of incoming stock was not as difficult in Sydney and Melbourne, due to the high level of investment in this sector,” Dr Mardiasmo said.
“This is quite surprising, given that these cities have the reputation of being more expensive.”
Brisbane
In Brisbane, Everton Park has the greatest number of houses on offer at a reasonable price, followed by Capalaba and the Richlands.
Chermside, Coopers Plains and Bowen Hills were the preferred options when it came to units.
The report stated that in the 12 months to June 2023, the median house and unit rental price in Brisbane increased by 12.7% and 18.2% to $630 and $550 per week respectively.
Dr Mardiasmo said Brisbane Metro has multiple residential and mixed-use projects planned, due to deliver 4,459 units/apartments, 739 townhouses, 14 dwellings, and 1,217 lots.
“Although this extra supply will address housing shortages, it is still below the planned stock in other capital cities, such as Sydney and Melbourne,” she said.
“Identifying affordable suburbs with a high amount of confirmed stock was quite difficult in Brisbane.
“Those wanting a better chance in finding a rental property will have to spend close to the Brisbane metro rental price.”
| Suburb | Median rent | Vacancy rate | Stock |
| Capalaba | $590 | 0.5% | 90 |
| Everton Park | $590 | 1% | 111 |
| Richlands | $530 | 0.5% | 91 |
PRD Affordable and Liveable Suburbs for Houses
| Suburb | Median rent | Vacancy rate | Stock |
| Chermside | $450 | 0.5% | 80 |
| Coopers Plains | $373 | 1.9% | 72 |
| Bowen Hills | $470 | 0.9% | 449 |
PRD Affordable and Liveable Suburbs for Units
Sydney
While it may be known as the most expensive city to rent, certain Sydney suburbs are more affordable than others and have more incoming stock.
The analysis revealed Carlingford, Granville, and Wiley Park as the best options for renting a house, while Crows Nest, Summer Hill, and Enfield were the preferred options when it came to units.
Compared to other capitals across Australia, Sydney has a sizeable level of incoming residential project developments.
| Suburb | Median rent | Vacancy rate | Stock |
| Carlingford | $750 | 2.3% | 88 |
| Granville | $540 | 0.7% | 15 |
| Wiley Park | $585 | 0.3% | 158 |
PRD Affordable and Liveable Suburbs for Houses
| Suburb | Median rent | Vacancy rate | Stock |
| Crows Nest | $580 | 2.8% | 45 |
| Summer Hill | $520 | 1% | 22 |
| Enfield | $438 | 1.4% | 71 |
PRD Affordable and Liveable Suburbs for Units
Melbourne
The 2023 report revealed Melbourne Metro has a substantial number of projects planned, due to deliver 12,131 units/apartments, 2,232 townhouses, 1,094 dwellings, and 827 lots.
“This surge in supply is expected to alleviate housing shortages and improve living standards for tenants,” Dr Mardiasmo said.
“Melbourne was one of the easiest capital cities to find a lower rental priced suburb with a high level of confirmed incoming stock, allowing unit renters in particular the option of higher affordability and liveability.”
| Suburb | Median rent | Vacancy rate | Stock |
| Ardeer | $380 | 0.9% | 320 |
| Burnside | $450 | 1.5% | 343 |
| Coburg North | $515 | 0.8% | 144 |
PRD Affordable and Liveable Suburbs for Houses
| Suburb | Median rent | Vacancy rate | Stock |
| Dallas | $350 | 0.6% | 685 |
| Broadmeadows | $380 | 0.6% | 714 |
| Essendon | $385 | 1.3% | 302 |
PRD Affordable and Liveable Suburbs for Units
Hobart
In the 12 months to June 2023, the median house rental price in Hobart decreased by 1.8% to $550 but increased for units by 3.3% to $465 per week.
The analysis revealed Warrane, Glenorchy, and Mount Nelson as the best options for renting a house, while Mount Nelson, New Town, and Bellerive were the preferred options when it came to units.
| Suburb | Median rent | Vacancy rate | Stock |
| Warrane | $500 | 1.8% | 4 |
| Glenorchy | $520 | 0.6% | 3 |
| Mount Nelson | $550 | 3.4% | 4 |
PRD Affordable and Liveable Suburbs for Houses
| Suburb | Median rent | Vacancy rate | Stock |
| Mount Nelson | $400 | 3.4% | 4 |
| New Town | $435 | 1.7% | 65 |
| Bellerive | $450 | 1.8% | 17 |
PRD Affordable and Liveable Suburbs for Units
Perth
Dr Mardiasmo said the Perth rental market is the “stickiest” across all capital cities.
“In 2023, the Perth Metro plans to add 996 units/apartments, 15 townhouses, 611 dwellings, and 290 lots,” she said.
“Although this is not the lowest level of confirmed supply, it is still quite low, and because of this, several of the chosen suburbs have an on-par or higher median rent than Perth Metro to ensure that renters have as much chance as possible to secure a property.
“This is the only instance in this report which disadvantages Perth renters.”
In the 12 months to June 2023, the median house and unit rental price increased by 12.5% to $540 and $450 per week respectively.
| Suburb | Median rent | Vacancy rate | Stock |
| Koongamia | $400 | 0.4% | 121 |
| Kenwick | $450 | 0.2% | 22 |
| Hamilton Hill | $520 | 0.5% | 24 |
PRD Affordable and Liveable Suburbs for Houses
| Suburb | Median rent | Vacancy rate | Stock |
| Shenton Park | $475 | 1.3% | 62 |
| Morley | $465 | 0.4% | 19 |
| Nedlands | $500 | 1.2% | 85 |
PRD Affordable and Liveable Suburbs for Units
Adelaide
In Adelaide, suburbs including Kilburn, Modbury, and Port Adelaide held potential for renters searching for a house, while for units Hope Valley, Glenelg North, and Parkside had the best credentials.
Each suburb had a median rental price below Adelaide’s metro average of $555 (houses) or $450 (units) in the June quarter.
Future supply for the capital remains at the lower end, with an expected 260 units/apartments, 21 townhouses, 605 dwellings, and 413 lots incoming.
| Suburb | Median rent | Vacancy rate | Stock |
| Kilburn | $450 | 0.2% | 48 |
| Modbury | $490 | 0.3% | 20 |
| Port Adelaide | $500 | 0.5% | 15 |
PRD Affordable and Liveable Suburbs for Houses
| Suburb | Median rent | Vacancy rate | Stock |
| Hope Valley | $320 | 0.2% | 13 |
| Glenelg North | $398 | 1.1% | 8 |
| Parkside | $430 | 1% | 81 |
PRD Affordable and Liveable Suburbs for Units
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