Over the past few months, the Australian real estate market has been on an up-and-down roller coaster, with conflicting signals coming from both property listings and vacancy rates. Even though the vacancy rate went down in February, the number of homes for rent went up by 7.2%, making the rental crisis worse. Both of these trends make the Australian real estate market look complicated and may have big effects on both buyers and renters.
Realestate.com.au’s most recent data show that in February, there were 7.2% more property listings in Australia as a whole. This is a big change from the month before, when the number of listings went down by 4.4%. The recent rise in interest rates has put a lot of stress on homeowners, which has led to a rise in the number of property listings.
Despite an increase in property listings, the rental market faced a different situation. February saw a sharp decline in vacancy rates, making it even more challenging for renters to find affordable housing. SQM Research says that the national vacancy rate for rentals dropped from 2.2% in January to 1.9% in February. The rental crisis in Australia is getting worse, and this represents the lowest vacancy rate since 2011.
The main causes of the rental crisis that has been getting worse for a while are a lack of affordable housing and a rise in the number of people moving to big cities to find work. The COVID-19 pandemic has also made things worse because many renters are finding it difficult to pay their rent because of lost jobs and income. These elements working together have increased demand for rental properties, but the supply has not kept up, pushing up prices and making it challenging for many renters to find a place to live.
Both renters and the larger real estate market are experiencing significant effects of the rental crisis. Renters will face higher costs, more competition, and a greater chance of being priced out of the market.
Overall, the conflicting information about the Australian real estate market creates a confusing picture for both buyers and renters. Even though the increase in real estate listings might help buyers in the short term, the worsening rental crisis could cause rents to go up even more and make it harder to find a place to live. As the market keeps changing, it’s important for both buyers and renters to stay up-to-date and ready for any changes that may come up.
An opinion Article by Suzana Wade of Locate Property