Rental Supply Squeeze Continues As Vacancy Rates Stay Low

Mackay’s vacancy rate is slightly above the tightest regional markets at 1.1%, while other centres such as Toowoomba (0.7%), Cairns (1.0%), Townsville (1.0%), Rockhampton (0.8%), and Bundaberg (1.0%) continue to face similarly constrained conditions.

Statewide, 33 of the 50 local government areas tracked by the REIQ recorded vacancy rates at or below 1.0%. Compared to the previous quarter, seven areas tightened further, 13 remained steady, and 30 saw slight easing. Despite a modest rise in vacant properties, supply is still far from meeting demand.

REIQ CEO Antonia Mercorella said the tight conditions were unsurprising.

“We all need a roof over our heads whether we rent it or own it,” she said.

“However, Queensland’s rental population is higher than the national average at 36 per cent, highlighting the state’s heavy reliance on rental properties to house Queenslanders. These persistently low vacancy rates being experienced in many parts of the state show there is significant strain on our rental housing stock.”

Ms Mercorella said boosting home ownership is key to easing rental pressures.

“By helping more first home buyers transition from renting to owning a home, it lightens the load on the rental market by alleviating some of the demand-side pressure.”

Queensland’s construction pipeline also needs to keep pace with demand.

“To cater to Queensland’s portion of nationally agreed construction targets we need to be building around 49,000 new dwellings each year, but with 34,000 built over the 12 months to September last year, we’re falling behind,” Ms Mercorella said.

“Speeding up new housing supply is critical because the reality is there is a lot of catching up to do and there are still strong headwinds coming.

“With a huge pipeline of infrastructure projects and ongoing labour workforce shortages, we expect to see tradies and their families moving to Queensland – and many of them will be looking to rent.”

Southeast Queensland remains under pressure, with Greater Brisbane (1.0%), Brisbane LGA (1.2%), Ipswich (0.9%), Logan (0.9%), Moreton Bay (0.9%), and Redland (1.0%) all in tight territory, while the Sunshine Coast (0.7%) and Gold Coast (1.1%) continue to face high demand. Regional centres show similar strain, reflecting a statewide challenge for renters and policymakers alike.

The REIQ classifies rental markets as tight (0–2.5%), healthy (2.6–3.5%), or weak (3.6%+), with most of Queensland firmly in the tight category.

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