Rental supply shrinking
The Reserve Bank Governor spoke before the Senate Economics Committee today, and noted that Australia's is heading for a shortage of rental properties.
He's not wrong.
Population growth has only just begun to increase again, and yet rental vacancies are already notching all-time lows.
We can expect to see record high population growth over the next few years.
But the combination of rising interest rates and APRA's extraordinary 3 percentage points lending assessment buffer is going to effectively cripple the rental supply.
Vacancy rates for units are now at record lows at under 1 per cent, according to CoreLogic.
Source: CoreLogic
Unit rents are now soaring, rising by 13 to 14 per cent annually in the three most populated capital cities.
Source: CoreLogic
I recently noted the global war for talent and the forthcoming Big Australia debate here.
