High rents and the severe shortage of rental properties is tipped to remain for some time.The
Reserve Bank of Australia’s latest rental report says high demand for properties will continue to force up rents and lock up availability.
Australian Bureau of Statistics figures show vacancy rates are below 1% in all major capital cities and rental increases in 2022 were the highest in a decade.
The RBA report says new rental supply will remain “muted” for years to come with property developers saying higher interest rates and building costs are behind the slowdown in supply.
“The decline in the demand for new dwellings is expected to weigh on overall dwelling investment over the next few years. As a result, vacancy rates are likely to remain at low levels,” the report says.
Housing Minister Julie Collins says the solution to the rental stress is for all levels of government to put substantial investment into new social and affordable housing – a comment which confirms that politicians don’t understand the problem.
The National Housing Accord aims to co-ordinate state and federal government departments with construction firms and institutional investors to help deliver one million new homes in five years from 2024.