A shortage of rental homes, multiple applications per property and rising rents are proof that Australia is undersupplied, with predictions the country could soon see the “biggest rent increases in living memory”.

Propertyology head of research Simon Pressley says property markets have largely survived the pandemic unscathed despite a fall in migration, with only Sydney and Melbourne recording a surplus of stock and falling rents. Many locations have vacancy rates below 1%.

“Australia does not have enough housing supply,” Pressley says. “We’re predicting the next couple of years will produce the biggest increase in rents Australia has seen.”

It’s good news for investors, who for many years have seen little or no increase in value on their investment. Equally, it is good news for sellers who will likely benefit from the increase in buyer demand. Pressley says most of Australia had an under-supply of housing prior to Covid-19 and it remains under-supplied.”