Queensland’s rental market is in a crisis, and the latest data from the Queensland Residential Tenants Authority tells a worrying story. Rents are skyrockting, availability of homes to rent is limited and renters are faced with little options than to accept large rent increases. What does this mean for your? and how did we get here?
1: Rents Are Rising At The Fastest Rate In History
Recen data show that median weekly rents have surged by almost 14% in the last 12 months, rising from $510 in 2022-23 to $580 in 2023-24. This is not merely a short spike, there is a trend at play that is reshaping where Queenslanders live. Brisbane’s median rent in the 4000 postcode jumped from $635 (historical average) to $800 in the past 12 months. Suburbs like Teneriffe and New Farm have seen even steeper rises, hitting a jaw-dropping $1,408.
Source: Acumentis, Queensland Rent Roll Market Update (October 2024), retrieved from: https://acumentis.com.au/news/queensland-rent-roll-market-update
2: There’s Nowhere to Go
With records number of people moving to Queensland, low levels of residential construction simply put demand out strips supply. acancy rates are stuck below 1% in many areas, creating a bottleneck that’s pushing renters out of desirable suburbs. According to the Real Estate Institute of Queensland, this is a “critical low” that shows no signs of easing. The rental market is tighter than ever, leaving many to wonder: where can we afford to live?
Source: Real Estate Institute of Queensland, Dangerously Low Vacancy Rates Persist in Queensland, retrieved from: https://www.reiq.com/resources/media-releases/dangerously-low-vacancy-rates-persist-in-queensland
3: The Suburban Shift
Premium suburbs like Ascot and Clayfield are seeing an influx of demand, with rents climbing steadily over three years. This suggests renters are moving out of the city in search of slightly more affordable options, but even these areas are becoming unattainable for many. For renters in Brisbane, finding affordability often means moving 20km or more from the CBD.
Source: The Courier-Mail, Mapped: How Far You Have to Move to Find Affordable Rent, retrieved from: https://www.couriermail.com.au/news/queensland/shock-data-shows-nearest-affordable-rents-20km-from-brisbane
4: No Relief In Regional Areas
Typically regional areas have provided a level of affordable housing. However, Regional Queensland has been declared the least affordable area in the entire country for renters, with housing costs consuming 31% of household income on average. This is the second year in a row Queensland has taken this unenviable title.
Source: News.com.au, Australian State Given Shameful Title, retrieved from: https://www.news.com.au/finance/real-estate/queensland-has-been-declared-the-homelessness-capital-of-australia
5: Qld Government Response
The Queensland government has pledged to build one million new homes by 2046 under the ‘Homes for Queenslanders’ plan. This includes 53,000 social housing units, aimed at easing the immense pressure on the market. But will it be enough, and can we wait that long? General market opinion this is a very ambitious target and one that will be hard to achieve.
Source: Wikipedia, Steven Miles, retrieved from: https://en.wikipedia.org/wiki/Steven_Miles
How Did We Get Here?
Population Boom and Migration
Queensland has experienced a surge in population growth, driven by interstate migration during and after the COVID-19 pandemic. People flocked to the Sunshine State for its lifestyle and affordability—ironically driving up demand for housing and pushing rents higher. Between 2020 and 2022, net migration to Queensland surpassed 50,000 people annually, straining an already tight housing market.
Supply Chain Disruptions
Construction delays and skyrocketing costs have crippled the supply of new housing. Labor shortages and material costs increased dramatically during the pandemic, delaying projects that could have alleviated pressure on the rental market.
Investment Shifts
Government policies, such as changes to land tax rules and tighter regulations for landlords, have led some property investors to sell off rental properties or exit the market altogether. This has reduced the pool of available rentals, exacerbating the supply-demand imbalance.
Regional Shift
While inner-city Brisbane remains expensive, regional Queensland has also seen unprecedented rent hikes. Families and workers, pushed out of the city due to affordability issues, are moving to suburbs and regional areas—only to find rising rents there as well.
Source: The Courier-Mail, Mapped: How Far You Have to Move to Find Affordable Rent, retrieved from: https://www.couriermail.com.au/news/queensland/shock-data-shows-nearest-affordable-rents-20km-from-brisbane
How Do We Fix This?
The rental crisis is a multi-faceted problem requiring bold solutions:
- Increase Housing Supply: Streamline planning and approval processes for new developments.
- Incentivise Landlords: Encourage investment in rental properties through tax breaks and grants.
- Protect Renters: Introduce caps on rent increases and strengthen tenant rights.
- Invest in Social Housing: Fast-track public housing projects to provide immediate relief.