Recent data on rental supply and demand has highlighted a shift in the market, with the return of overseas migrants causing rental supply in the big cities to slump and competition for vacant listings to heat up.
With inquiries per listing rising 31% year-on-year across capital cities, the report noted that rental markets in areas like Melbourne and Sydney have received a fresh sugar hit.
Rental listings are down 26% year-on-year and are at their lowest level since February 2003, causing an immense need for more rental accommodation, particularly in the major capital cities where demand is well in excess of supply.
Cameron Kusher, director of economic research for PropTrack, said that with overseas migration lifting, it looks as if it will become even more difficult to rent a property in the capitals during 2023.
Data shows the largest increases in potential renters per listing in December were in Melbourne (55%), Sydney (27%), and Brisbane (14%).
Kusher said rental markets in the two biggest cities will be under further pressure. “Most of the overseas migration that will occur over the coming years will see those arrivals settle in these two cities, which will increase demand for rental accommodation,” he said.