The national rental vacancy rate increased slightly to 1.12% in December, offering a modest relief for renters. However, the overall trend in 2023 showcased tightening market conditions, leading to challenges for tenants. PropTrack data indicates a year-over-year decline of 0.13 ppt in the vacancy rate. Despite the marginal improvement, rental markets remain tight with limited stock, putting pressure on household budgets. The national vacancy rate has halved since March 2020. Melbourne experienced the most significant tightening, followed by Sydney and regional Queensland in 2023. Adelaide and Perth remained the toughest rental markets, although conditions slightly eased over the year. Overall, renters are likely to face continued challenges in 2024 due to limited rental stock and increased competition.
The housing shortage, escalating rents, and the broader cost-of-living crisis have led to a surge in demand for house sharing across the country. Many Australians are opting for shared accommodation to manage costs amid the rental crisis. Despite December being typically quiet, the platform experienced heightened activity, indicating a busy summer. Looking ahead, while challenging rental conditions persist due to low vacancy levels, experts suggest that the pace of deterioration may slow, potentially leading to a stabilization and slower growth in rental prices compared to the previous year.
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