Rolling crisis
It's been noticeable of late that the rental market frenzy has subsided, as the market adjusts to the new conditions and higher rents.
That having been said, it doesn't seem as though the rental crisis going away.
Instead with population growth running at record highs - but prospective landlords also unable to borrow due to the record lending assessment buffer in place - we now seem to be embroiled in a rolling crisis.
PropTrack reported rental vacancies falling from 1.24 per cent in July to a record low of just 1.10 per cent in August.
Rental vacancy rates fell in 7 of the 8 capital cities over the month, with Sydney recording the sharpest monthly decline to 1.26 per cent.
Vacancy rates are lower still in Melbourne, while Brisbane, Adelaide, and Perth all have rental vacancy rates running at well under 1 per cent.
Source: PropTrack
The share of available properties for rent has fallen by more than half since the onset of the pandemic, said PropTrack, with no signs of the rental crisis easing.
The rental crisis has been driven by high immigration, fewer investors, and tight lending settings meaning first homebuyers unable to borrow becoming stuck in the rental pool.
