He said vacancy below 2% signalled “robust rental demand, price resilience and long-term occupancy stability.” Low vacancy rates mean rental stock remains close to fully occupied, with strong competition for available dwellings and limited flexibility for tenants looking to move or negotiate.
Papaleo (pictured right) noted that more new households are renting for extended periods relative to previous generations because of financial constraints and high initial purchase costs, with build-to-rent now established as a permanent segment of Australia’s housing system.
Katherine Sundermann, senior lecturer in urban planning and design at Monash University, said the pattern of increased renting appeared to be a lasting feature of the market. “There is clear evidence that Australians are renting for longer,” she said. “We’re seeing lower levels of home ownership at the same stage of life compared to previous generations.”
Census figures show the national home ownership rate has fallen from about 70% in 2006 to 67% in 2021, with more pronounced declines among younger age cohorts.
Sundermann said the consequences of this shift extended beyond tenure. “Home ownership remains a major driver of wealth accumulation in Australia,” she pointed out.