The number of rental properties available for under $400 per week has plunged to a record low.

PropTrack’s Market Insight Report says 19.3% of rental listings nationally are for less than $400 per week compared with 41.8% in March 2020.

Economic research director Cameron Kusher, says the rental market is likely to get worse before it gets better, because there is no likelihood of a significant increase in rental stock in the near future.

“We basically need more supply, which means we need more investors buying properties. But servicing debt on an additional property at the moment is pretty difficult given how much interest rates have risen,” he says.

The number of properties to rent for under $400 per week in capital cities dropped from 36.1% in March 2020 to 16.4%.

Regional areas also had a significant drop from 57% of the market in March 2020 to 28.2%.

Kusher says it will only improve if government steps in and makes changes to policy.