March quarter report reveals more regions falling below critical 1% availability level
Queensland’s rental market tightened further in the March 2025 quarter, with vacancies falling in nearly half the state’s regions, according to new figures from the Real Estate Institute of Queensland (REIQ).
The REIQ’s latest Residential Vacancy Rate Report shows the state’s average vacancy rate dropped from 1.0% to 0.9%, ending three consecutive quarters of steady conditions and underscoring the ongoing supply squeeze. Of the 50 areas covered in the report, 24 recorded lower vacancy rates, 12 remained stable, and 14 saw an easing.
More than three-quarters of the regions analysed reported vacancy rates at or below 1%, placing them firmly in what the REIQ defines as a “tight” market. The institute’s benchmark for a healthy rental market ranges between 2.6% and 3.5%.
“The pressure continues to mount in our inner and outer suburban areas – particularly in Brisbane and surrounds, which recorded one of the most notable tightening movements this quarter,” said REIQ chief executive Antonia Mercorella (pictured above).
Brisbane City’s vacancy rate fell to 1%, while nearby regions including Pine Rivers, Redcliffe and Moreton Bay ranged between 0.6% and 0.7%. Inner Brisbane recorded a slight easing to 1.2%, but it remains well below balanced market levels.
At the most extreme end of the scale, both Cook and Goondiwindi posted zero vacancy, indicating a complete lack of available rental housing. Sixteen other areas, such as Maryborough, Toowoomba and the Caloundra Coast, registered rates at or below 0.5%.
Only two areas, the Bay Islands (2.5%) and Isaac (3.2%), remained in the healthy vacancy range. Noosa saw the most significant softening, with its vacancy rate rising to 2%. However, affordability remains a barrier for most renters in the region.
“Despite these results, property managers are reporting more subdued letting activity, increased days on market, and lessors being more careful with tenant selection,” Mercorella said.
“This paradox of lower activity despite a tight market reflects some fatigue on both sides: many renters are being priced out, stretching too far, or grouping up to rent, while lessors are holding firm on terms and expectations due to rising costs and more onerous legislative requirements.”
The REIQ attributes much of the ongoing strain to structural undersupply. New dwelling approvals in March 2025 reached just 3,116 in seasonally adjusted terms, well below the 4,100 needed each month for Queensland to meet its share of the National Housing Accord target. The trend estimate from the Australian Bureau of Statistics also fell, from 3,120 in July 2024 to 2,957 in March 2025.
“Queensland’s stubbornly tight rental conditions are symptomatic of years of underinvestment in housing supply, compounded by rapid population growth,” Mercorella said. “There’s no silver bullet, but the solution lies in one thing: more housing.
“We continue to see a severe imbalance between supply and demand in Queensland’s rental market, and it is crucial that we focus on addressing the roadblocks that are preventing new housing from coming online.
“Whether it’s investing in enabling infrastructure, land release, or planning reforms, all levels of government must work together to ensure that there are enough properties available to meet demand. Until all levels of government focus on cutting red tape, fast-tracking approvals, and removing barriers to private investment, these numbers will not meaningfully improve.”
The final stage of Queensland’s rental law reforms took effect on May 1. With major legislative changes now in place, along with the federal election outcome decided and the Reserve Bank set to review interest rates in the coming weeks, the REIQ anticipates increased stability in the market, which may encourage more long-term planning by buyers, sellers and investors.
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