Vacancy Rates Ease – But Remain Tight

National vacancy rates have eased slightly but still remain very tight.

New data from SQM Research shows the national vacancy rate increased to 1.4% in December 2025, up from 1.3% in November.

This equates to about 43,850 dwellings being vacant, according to SQM Research managing director Louis Christopher.

He says the increase reflects a typical seasonal lift in available rental stock.

“Despite the increase, vacancy rates remain below long-term averages, indicating that rental market conditions continue to favour landlords in most capital cities,” he says.

“Sydney and Brisbane continue to see strong tenant demand, while Hobart remains at near record-low vacancy levels. Rents are still rising in most capitals, particularly for houses, despite a slight easing in rental growth rates compared to last year.”

Melbourne has the highest vacancy rate of 2%, followed by Canberra, 1.9%, Sydney, 1.8%, Brisbane, 1.2%, Darwin, 1%, Adelaide, 0.9% and Perth, 0.7%. 

Hobart had the tightest rental market with a vacancy rate of just 0.4%.