In this Property Management Wednesday edition of Wealth Coffee Chats, Kasey brings a timely update on the tightening rental market across Australia and what it truly means for landlords. With vacancy rates hitting record lows, rents rising, and affordability pressures building across Perth, Queensland, Melbourne, and key regional markets, the big question remains: Is this a signal investors must act on—or just more market noise?
Kasey breaks down new rental affordability data, insights from SGS Economics, trends in lease renewals, and why tenants are increasingly staying put rather than heading back into a hyper-competitive marketplace. He also explains the flow-on effects for investors, what rising yields mean in today’s environment, and why diligent screening and rent assessments are more crucial than ever as we head toward 2026.
Episode Highlights:
- Perth identified as the least affordable rental market in Australia, with vacancy rates near zero.
- In Queensland and many regional areas, renters now spend 30%+ of their income on housing.
- REIQ data shows 38 out of 50 regions have vacancy rates at 1% or below.
- Year-to-date, investors in key markets are seeing ~5% rent growth, averaging an extra $100 per month.
- Tenants increasingly renew leases out of necessity, avoiding competitive open markets.
- Investment loans now make up 41% of all new lending, signalling rising investor activity.
- Why landlords must reassess tenant affordability, application screening, and rent evidence before approving new tenants in a tightening market.
With supply still lagging and demand strengthening into 2026, Kasey shares what landlords should anticipate—plus the practical steps to stay ahead in Australia’s ever-tightening rental landscape.
