Australia's Rental Market: A Crisis in Rapid Motion with no signs of slowing

When you're planning a move to Australia with your family, you might expect to spend time choosing a suburb, school, lifestyle etc, but one factor you may not fully anticipate is how fiercely competitive the rental market has become.

The national rental vacancy rate dropped to around 1.0% in January 2025, a historically low figure with some cities such as Brisbane dropping to as low as 0.8%. According to Australian Bureau of Statistics (ABS) data, median rents across states rose strongly from 2021 to 2024 and remain higher than pre-Covid levels.

In major capitals, only a small share of available rentals are within reach , for example, one report found that households on average incomes could afford just 2% of advertised rental stock in certain cities. Several key forces are making the rental market ultra tight such as supply shortage, high demand, wage growth lagging rent growth and regional spread meaning regional areas are seeing rental pressures too.

What does this mean if you are moving to Australia in the future?

You may spend more time hunting for a suitable rental than expected. With vacancy rates near 1%, properties are snapped up very quickly, sometimes within days of them being listed. Most viewings have queues of people attending which means there is more competition than ever.

You may need to adjust your budget expectations. Rentals have risen in areas of population such as within close distance to the beach or schools in the catchment area. Houses with pools tend to cost more and there may be fewer options in your preferred suburb. You might have to compromise on location for affordability.

Ultimately, it is down to the property owner who moves into their property. This is based on a strong application, supporting documents and proof of income/savings. The more information given, the better chance you might have at securing a rental.

A higher rental cost means less wiggle room in your budget for other essentials (schools, relocation costs, home set up) which is where having expert support matters.

If you are considering temporary accommodation whilst searching for a rental, you could end up spending thousands in the process. Expect to spend anywhere from $300+ per night with peak period rates scaling $500+ per night.

At MDU, we recognise that securing the right rental home is one of the most stressful parts of relocating. That's why we offer services that tie directly into this challenge. We provide suburb-insight calls so you know which areas may offer more rental availability/value. We help you find you perfect home with our Relocation Packages as well as help with home setup and logistics, so that once you've secured your property you're ready to move straight in. We keep you informed about rental realities, vacancy rates, typical rents, what to expect in your target area, and help you budget accordingly.

Australia's rental market isn't just tight, it's one of the most competitive it's been in generations. For families relocating, that means preparation, expert support and realistic expectations are more important than ever. With the right guidance and planning, you can land a great home, it may just take a little strategy.

If you're ready to dive into rental options and suburb suitability for your new life in Australia, let's talk!