Queensland rental crisis deepens as vacancy rates hit record lows

Queensland’s rental crisis has intensified with about half of the state’s regions reporting vacancy rates below 1 percent, according to new data from the Real Estate Institute of Queensland.

The September quarter figures showed the statewide vacancy rate remained at a critical 1 percent, with some regions recording rates as low as zero.

REIQ CEO Antonia Mercorella said the figures highlighted urgent challenges for the new state government.

“While low vacancy rates appear to be the new normal, the new State Government should not simply accept this trend,” Mercorella said.

Far North Queensland recorded some of the state’s tightest rental markets, with Cook at 0 percent vacancy, followed by Mareeba at 0.4 percent.

The crisis has begun affecting regional employment, according to Mercorella.

“These figures may just be numbers, but they carry real human consequences. For example, the scarcity of housing options in Cairns is reportedly making it near impossible for job seekers to relocate there,” she said.

The report covered 50 local government areas, with 19 showing tighter conditions and 13 experiencing slight relaxation in vacancy rates.

Mercorella noted a emerging “two-speed” rental market where affordable properties lease quickly while higher-priced properties remain vacant longer.

“Households are tightening their purse strings and effectively tenants have put their own caps on what they are willing to budget, or can afford, for rent,” she said.

The REIQ welcomed the Crisafulli Government’s pledge to deliver one million homes by 2044, including 53,000 new social and affordable homes.

The data showed the highest vacancy rates were in Bay Islands at 3.2 percent, Noosa at 2.4 percent, and Isaac at 2.1 percent.