Rental conditions are extremely tough in the capital cities, with more demand, fewer available properties and rising prices. However, some suburbs are seeing far less competition.
The new PropTrack rental report shows the total number of rental listings has fallen 7.1% nationally since September 2022.
This is largely due to decreases in capital cities, particularly Sydney and Melbourne, where the number of properties listed has fallen by 12% and 20% respectively.
The number of total capital city listings is 27.3% lower than the 5-year average, reflecting just how challenging the current market.
For renters, knowing where competition has fallen could mean the difference between securing a home, or not.
New PropTrack data has revealed the suburbs with the fewest key enquiries per listing, relative to that seen in their respective capital city.
Key enquiries include highly-engaged activities such as emailing, texting or calling an agent, phone number reveal, document download and submitting an inspection request.
Top 10 suburbs with the least key enquiries per listing relative to their capital city
|Suburb||State||Capital city||Key enquiries per listing - suburb||Key enquiries per listing - capital city||Difference|
Balnarring topped the list with just 11 key enquiries per rental listing, 82% less than a typical home in Greater Melbourne.
The Brisbane suburbs of Dayboro and Kilcoy are facing less competition for rentals, with homes in these suburbs recording 17 key enquiries per listing - just a quarter of the number typically seen in Greater Brisbane.
While there are pockets where renters stand a better chance of securing a home, competition for available properties is extremely high due to several demand and supply factors.
While the share of investor lending has recovered more recently, it has not made up for the mass departure of investors during the pandemic.
Investor-owned properties also continue to be sold, contributing to the shortage in rentals.
Rising interest rates over the past year and a half have decreased borrowing capacities for potential homeowners, particularly first-home buyers, making it more difficult to transition away from renting.
This, in addition to the increased level of migration, has driven up demand for rental properties.
While the supply of rental properties has increased in most regional areas and in our smaller capital cities over the past year, it has tightened substantially in our larger capitals, remaining well below the five-year average level.
This trend is likely to persist over the short to medium term, and with demand expected to remain heightened, rents are expected to continue rising.