Statewide rental shortages persist as limited easing fails to meet demand
Queensland’s residential rental market ended 2025 under sustained pressure, with the statewide vacancy rate at 1% in the December quarter, according to the Real Estate Institute of Queensland’s (REIQ) latest Residential Vacancy Rate Report.
REIQ considers a balanced rental market to sit between 2.6% and 3.5%. In the December quarter, 33 of the 50 local government areas and sub‑regions monitored across the state reported vacancy rates at or below 1%, indicating ongoing scarcity of available rental stock.
On a quarterly comparison, seven markets tightened further, 13 were unchanged and 30 showed modest easing. While the number of properties becoming vacant has increased slightly, the institute reported that available supply remains well short of tenant demand.
“It’s like a game of ‘musical chairs’ - when rental supply falls short, it’s the most vulnerable people in our community who are left standing,” said REIQ chief executive Antonia Mercorella (pictured right). “This is evident in our state’s social housing waitlist, which has reached almost 59,000 Queenslanders.
“We all need a roof over our heads whether we rent it or own it. However, Queensland’s rental population is higher than the national average at 36%, 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.”
Mercorella also noted that some renters who could potentially service a mortgage are finding it difficult to accumulate a deposit while prices remain elevated.
“It’s young Queenslanders in the 25-39-year-old age bracket who have seen the largest declines in home ownership rates,” she said. “They’re demonstrating they can reliably pay the rent (sometimes at a rate comparable to mortgage repayments) but are finding it challenging to save for a home deposit at the same time – particularly given sales prices are also on the rise.”
Mercorella stressed the need to lift home ownership levels, such as the Crisafulli Government’s plan to boost Queensland’s home ownership rate - currently the lowest of any state at 64% - to the highest in the country within a decade.
She also pointed out that to cater to Queensland’s portion of nationally agreed construction targets, around 49,000 new dwellings need to be built each year, but with 34,000 built over the 12 months to September last year, the targets are falling behind.
“It’s time for a reset to help ease Queensland’s rental market pressures,” Mercorella said. “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.”
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