Rental market remains hot despite nationwide vacancy rate increase

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on January 06, 2022 Fact Checked
Rental market remains hot despite nationwide vacancy rate increase

Rental vacancy rates rose marginally in December 2021, marking its first increase since December 2020.

Domain's Rental Vacancy Report for the last month of 2021 noted an increase in rental vacancy rate across the nation rising to 1.7%.

This rise in vacancy rates was driven by significant monthly increases in the number of vacant rentals across all capital cities besides Hobart.

December 2021 Vacancy Rates.JPG

Source: Domain

Vacancy Rate by Capital City.JPG

Source: Domain

Domain noted it is typical for the rental market to see a boost in supply in December as the end of year marks the rental changeover period with end of leases and increased overall choice.

Chief of Research and Economics at Domain Dr Nicola Powell said while we saw a slight increase in the number of available rental properties in December it is still a landlords' market.

"Early in 2022, it’s likely we’ll see decreases in the number of vacant rental properties as strong historical rental demand in January reduces the number of vacant rental listings," Dr Powell said. 

Despite rental stock rising across all capitals bar Hobart, stock remains significantly lower year-on-year as competition continues to remain hot.

Domain reported the number of vacant properties shrunk from 54,000 dwellings in December 2020 to 37,000 in December 2021, representing a 31% reduction in vacant rentals.

"Rental markets will be under further strain as borders reopen and the flow of international students, overseas migrants and expats resume," Dr Powell said.

Image by Ivan Samkov via Pexels. 

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Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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