Commissioned by Well Home Loans and conducted in December 2021, the new research identified suburbs where there are only one, two, or three vacant properties available for rent.
For a property to be considered vacant, it must have been advertised for rent for 21 days or more.
Additional filtering criteria was used to ensure that the rental market was legitimate and competitive, and as a result 20 suburbs emerged where it's most challenging to secure a rental property.
Well Home Loans CEO Scott Spencer said there are two different stories playing out in these 20 suburbs, with investors in a strong position and tenants in a weak position.
"If you’re an investor in a suburb that contains only three vacant rental properties, tenants have to compete hard for your property, which gives you the chance to push up rents," Mr Spencer said.
"Conversely, if you’re a tenant, life is really tough, because it’s difficult to find accommodation and you know rents are climbing fast."
Mr Spencer said that the low vacancy rates make matters worse for tenants.
"Even if tenants were prepared to move one or two suburbs along, they’d still find it hard to secure accommodation," he said.
"That gives investors considerable market power."
Top 20 suburbs where it's hardest to find a rental
These suburbs have not only been ranked based on their bustling rental markets, but also by their level of disadvantage.
Mr Spencer recommended that tenants in these highly competitive suburbs consider jumping on the property ladder, but if the suburb is ranked lower on the SEIFA (socio-economic indexes for areas) disadvantage scale, they may find this hard to do.
"Tweed Heads South and Tweed Heads West, for example, are located in an area in the bottom decile, which means their area is more disadvantaged than 90% of areas within New South Wales. That makes it hard for tenants to afford rising rents and to save a deposit," Mr Spencer said.
"Conversely, Casuarina is located in an area in the top decile, which means their area is less disadvantaged than 90% of areas within New South Wales. So they would find it easier to cope with the big jump in local rents and to get onto the property ladder."
With this in mind, below are the top 20 suburbs where it's considerably more difficult to secure a rental property.
1. Casuarina, NSW
Located in Tweed Valley, Casuarina only had one vacant property out of the suburb's 560 rental properties.
House rental prices increased by $205 per week over the past 12 months, and average days on market is 19.
The vacancy rate in Casuarina is 0.45% and the SEIFA disadvantage score is 10.
2. Henley Beach South, SA
Henley Beach South only had one rental property vacant out of the 609 in the suburb.
Rental prices for houses increased by $175 per week over the past 12 months, and the average days on market is 15.
The suburb's vacancy rate is 0.63% and its SEIFA score is eight.
3. Pelican Waters, QLD
There were two rental properties vacant out of 524 in Pelican Waters.
Located in Caloundra, weekly rents increased by $170 over the past 12 months for houses rented in the area, and average days on market is 15.
The vacancy rate is 0.73% and its SEIFA disadvantage score is nine.
4. Maleny, QLD
Located on the Sunshine Coast Hinterland, there was only one rental property vacant out of the 612 in Maleny.
Rental prices hiked by $150 per week for houses in the area over the past year, and the average days on market is 17 days.
Maleny's vacancy rate is 0.54% and the suburb's SEIFA disadvantage score is five.
5. Bilinga, QLD
Only one property was vacant out of the 1,028 rental properties in this Coolangatta suburb.
Weekly rents have increased by $145 over the past 12 months for houses in Bilinga, and average days on market is 19.
The vacancy rate is 0.4% and the SEIFA disadvantage score is four.
6. Swansea, NSW
Out of the 1,138 rental properties in Swansea, only one was available for rent.
House price rents have increased by $140 per week over the past 12 months, and average days on market is 13.
Located in Lake Macquarie - East, the suburb's vacancy rate is 0.27% and the SEIFA disadvantage score is one.
7. Rye, VIC
Two properties were available for rent out of the 2,725 located in the Mornington Peninsula suburb.
Weekly rent prices for houses increased by $130 over the past year, the average days on market is 16, and the vacancy rate is 0.36%.
The suburb's SEIFA disadvantage score is four.
8. North Beach, WA
One out of the 746 rental properties in the suburb was available for rent.
House rental prices have climbed by $130, and the average days on market is 20.
The vacancy rate is 0.55%, and the suburb's SEIFA disadvantage score is nine.
9. Highland Park, QLD
Located in Nerang, only one out of the 650 rental properties in the suburb was vacant.
Weekly house price rents have increased by $125 over the past 12 months, average days on market is 13, and the vacancy rate is 0.33%.
The suburb's SEIFA disadvantage score is six.
10. Safety Beach, VIC
Three suburbs were available for rent out of the suburb's 1,196, and house rental prices have increased by $120 per week over the past 12 months.
The average days on market is 18, the vacancy rate is 0.9%, and the Mornington Peninsula suburb's SEIFA score is seven.
11. Reedy Creek, QLD
One rental property was vacant out of the 795 in this suburb.
Weekly rents have increased by $120 for houses in the area over the past year, and average days on market is 12.
The vacancy rate is 0.3% and the SEIFA disadvantage score is nine.
12. Currumbin Waters, QLD
Another suburb located in Coolangatta, only one out of the 1,351 rental properties in the suburb was available for rent.
Weekly house rents have increased by $120 over the past 12 months, and average days on market is 12.
The suburb's vacancy rate is 0.28% and its SEIFA score is six.
13. Bonython, ACT
Located in Tuggeranong, one out of 601 rental properties was vacant in Bonython.
House weekly rental prices have hiked by $120 over the past year, average days on market is 20, and the vacancy rate is 0.51%.
The suburb's SEIFA disadvantage score is nine.
14. Mardi, NSW
One out of Mardi's 502 rental properties was vacant, and weekly rent prices have increased by $115 for houses over the past 12 months.
Average days on market is 13, the vacancy rate is 0.36%, and the suburb's SEIFA disadvantage score is seven.
15. Bogangar, NSW
Located in Tweed Valley, two rental properties were vacant out of the 617 in the area.
Weekly rents have increased by $110 for houses over the past year, and average time on market is 14 days.
The vacancy rate is 0.95% and the suburb's SEIFA score is four.
16. Tweed Heads South, NSW
Three out of the suburb's 2,275 rental properties were vacant, and weekly rents for houses have increased by $110 over the past 12 months.
Average days on market is 14, the vacancy rate is 0.62%, and its SEIFA disadvantage score is one.
17. Deloraine, TAS
Only one out of the 727 rental properties in the suburb were vacant, and weekly rent prices have increased by $110 for houses in the area over the past 12 months.
Average days on market is 19, the vacancy rate is 0.74%, and the SEIFA score is two.
18. Tweed Heads West, NSW
Out of the 1,332 rental properties in the area, only three were vacant.
Weekly house rents have increased by $105 over the past year, average days on market is 14, the vacancy rate is 0.62%, and the suburb's SEIFA disadvantage score is one.
19. Pottsville, NSW
Another Tweed Valley suburb, one out of the 1,015 rental properties was vacant.
Rents for houses have increased by $105 per week over the past 12 months, and average days on market is 16.
The vacancy rate for Pottsville is 0.23% and its SEIFA score is six.
20. McCrae, VIC
Located on the Mornington Peninsula, one out of the 509 rental properties in the suburb was vacant.
Weekly rents for houses have increased by $100 over the past 12 months, average days on market is 18, the vacancy rate is 0.74%, and the SEIFA disadvantage score is seven.
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