Queensland’s rental market in state of flux, REIQ report finds

Queensland’s rental market is showing early signs of easing in pockets of regional and coastal areas, but remains critically tight across most of the state, with the statewide vacancy rate inching up just 0.1 percentage points to 1.0% in the June 2026 quarter — still well below the Real Estate Institute of Queensland’s (REIQ) healthy range of 2.6–3.5%.

The REIQ’s latest Residential Vacancy Rate Report for the June 2026 Quarter tracked 50 regions across the state, finding 27 recorded a rise in vacancies, compared to 13 that tightened and 10 that remained unchanged. Despite the broader trend of loosening, 29 regions reported vacancy rates of 1.0% or less, and only six recorded rates above 2.0%.

The most notable easing was concentrated in regional and coastal markets. Fraser Coast (2.2%) and Hervey Bay (2.3%) both rose by 0.7 percentage points, while Maryborough (1.4%) increased by 0.6 percentage points. Gympie (1.4%), Mareeba (1.0%), Caloundra Coast (1.1%), Gold Coast (1.5%) and Burdekin (1.1%) each recorded rises of 0.4 percentage points.

Several areas reached their highest vacancy rates since the onset of the pandemic, including Fraser Coast, Hervey Bay, Maryborough, Gold Coast, Mackay (1.2%), Rockhampton (1.0%) and Mareeba. For Gympie, the current rate is the highest in almost a decade.

REIQ CEO Antonia Mercorella said the data pointed to gradual movement but cautioned against overstating the shift.

“We’re seeing more regions relax than tighten, particularly across parts of regional Queensland, but we’re still a long way from what anyone would call a healthy rental market,” Ms Mercorella said.

“We’re hearing reports of more break leases, more tenants trading down to cheaper accommodation, and some higher-priced rentals taking longer to secure a tenant – suggesting that affordability is influencing behaviour.

“Rental markets in these regions could be gradually rebalancing, as new housing comes online with a promising upward trend in the number of building approvals and migration levels continuing to rise but at a slower pace.”

Ms Mercorella noted that localised factors were also contributing to vacancy movements in specific areas, citing the completion of the Hervey Bay Community Hub construction project as one potential driver of easing in the Fraser Coast region. However, she urged caution in interpreting short-term fluctuations.

“What exactly is behind these handful of spiked vacancy rates is difficult to pinpoint and the REIQ cautions against reading too much into quarterly fluctuations when overall vacancy rates remain exceptionally tight across most of the state,” she said.

While southeast Queensland’s conditions remained largely stagnant — with Greater Brisbane (0.8%), Brisbane LGA (1.0%), Ipswich (0.7%), Logan (0.8%), Moreton Bay (0.7%), Pine Rivers (0.6%) and the Sunshine Coast (0.9%) all holding firm — the state’s tightest markets remained in regional centres. Cook and Goondiwindi both recorded 0.0% vacancy rates, effectively offering no rental availability, while Charters Towers (0.3%), Banana (0.4%) and Maranoa (0.4%) followed closely behind.

At the other end of the spectrum, Isaac (6.2%) and the Bay Islands (4.3%) — which includes North Stradbroke, Russell, Macleay, Karragarra, Lamb and Coochiemudlo Islands — remained Queensland’s only markets classified as weak under the REIQ’s methodology.

The most significant tightening over the quarter was recorded in Mount Isa (1.2%), which fell by 0.7 percentage points. Whitsunday (0.9%) contracted by 0.4 percentage points, while Townsville (0.9%) and Lockyer Valley (1.0%) each tightened by 0.3 percentage points. Mount Isa and Lockyer Valley have now tightened for consecutive quarters.

Ms Mercorella said feedback from property managers indicated that financial pressure was building on both landlords and tenants.

“We’re hearing that many property owners are feeling the squeeze too, with higher mortgage repayments, insurance, maintenance and compliance costs stretching household budgets,” she said.

“Property managers are reporting that some owners are becoming more reluctant to undertake non-essential maintenance and upgrades because they’re finding it harder to absorb the cost. That’s a sign of strain throughout the housing system, not just among tenants.”

On the longer-term outlook, Ms Mercorella pointed to the impact of recent federal policy settings on investment and rental supply.

“Rent data for the June quarter showed Brisbane’s median weekly rent is now sitting around $700 per week, however because of Queensland’s rent increase cap, we won’t see the full impact of recent Federal Budget taxation reforms for some time,” she said.

“The Federal Government made clear their intent was to make property investment less attractive, so it’s difficult to see how making investment less appealing won’t eventually flow through to rental supply.

“When we rely so heavily on private investors to house Queenslanders, any policy that discourages investment ultimately has implications for renters too.”

With 41,298 people currently registered for social housing in Queensland, Ms Mercorella said the scale of unmet housing need underscored the urgency of supply-side reform. She welcomed the Productivity Commission’s interim report on housing supply regulation, including its recommendations to increase density, remove minimum lot sizes and floor space ratios, and streamline approvals. She also pointed to the Queensland Government’s TradieStart program — which offers employers apprenticeship incentives — as a necessary measure to build the workforce required to deliver new housing.

“Ultimately, there is only one sustainable solution to housing affordability and rental pressures in Queensland, and that’s more housing supply,” Ms Mercorella said.