Rental markets are expected to become even tighter in 2023. A new report from PropTrack finds that enquiries per rental listing are up 31%, while the number of available listings has decreased 26% compared to the same time last year – the lowest they’ve been since 2003.

The biggest decreases were seen in Sydney and Melbourne, while regional markets have seen a slight easing of demand, with total rental listings increasing 9.8% year-on-year.

Rents in both capital and regional areas have increased, with a 10% annual rise in capital cities and 7.1% in regional areas.

Experts suggest that the most effective way to ease rental pressures is to encourage investors to buy rental properties. Shaun Bond, an economist from the University of Queensland, says corporate investors could also play a role in alleviating the current pressure in the rental market.

“This is the build-to-rent market, where large investors build apartments that could be rented out,” Professor Bond says. “That would help bring on large supply relatively quickly.”