Rental Demand Is Skyrocketing Rental Prices As Brisbane Becomes Second Most Expensive City To Rent

Suzana Wade is one of Brisbane’s leading property managers and the principal of Locate Property. Suzana weighs in on the current situation with Brisbane Rentals and the further increase of tenants looking for homes and she gives her opinion on what the future holds for renters and investors.

Median rentals in Brisbane reached a record high of $550 per week last year, making it the second most pricey capital city to rent an apartment, tied with Canberra.

In a record run of rent increases that is exacerbating the rental crisis, the most recent Domain Rent Report for the December quarter, revealed that the median asking unit rent in Brisbane had increased by over 19.6% in the last year.

The combination of rising international migration, a lack of new developments, and declining affordability has left our formerly accessible city second only to Sydney in terms of median unit rents. The report also revealed that rental vacancy rates are still at a nearly all-time low of 0.9%, conditions that are all combining to continue the rental crisis. The fact that Brisbane’s vacancy rates have been below 1% for over two years is particularly concerning.

Domains research claims that after a modest quarterly increase, the inner east area of Brisbane is now the most costly place to rent a home, at $758 per week. After a 1.5% increase, the city’s CBD is the most expensive area for apartments, at $650 per week.

Another factor impacting rental demand is that Queensland has one of the strongest rates of population growth across the country at 2.3 percent. With the total population of Australia growing by eight million people in the last 25 years.

Domain chief of research and economics Dr Nicola Powell stated that an easing of the rental crisis may come, especially in the unit sector, by promoting investment activity and expanding government and public housing. But due to the current shortage of supplies across the country, demand will remain high for the unforeseeable future. 

Meaghan Scanlon, the housing minister for Queensland, commented on the national housing crisis last year, commenting on the highly competitive market, and historically low rental property vacancy rates contributing to the near 20 percent increase in rent for tenants over the previous 12 months.

That is in addition to all the other elements that emerged during the pandemic, such as abnormally high migration, problems with the availability of land and buildings, and elevated demand. Ms Scanlon pointed out that the impact the current state of affairs is having on younger generations makes it feel especially dire.

I will continue to keep Brisbane investors, renters and those looking to enter the Brisbane market informed and prepared to best navigate the continuing challenges impacting us all.

Suzana Wade is a leading authority in the Real Estate industry in Brisbane, particularly in Property Management sector and has been voted as Brisbane’s best property manager. For further advice and insights into Brisbane Property Management you can contact Suzana Wade HERE

You can also keep up to date with the latest resources for both investors and tenants in Brisbane through REIQ