In July, the Australian rental market showed signs of stability as more property investors re-entered the scene, providing renters with slightly more options following a period of record-low vacancy rates. Data from PropTrack indicated a modest decline in the national rental vacancy rate to 1.42%, with regional areas leading this change, while capital cities held steady at 1.47%.

Over the past three months, rental supply has improved, with vacancy rates increasing by 0.18 percentage points. This rise has been most significant in six of the eight capital cities. Despite these gains, the market remains tight, with vacancies still at half the level considered balanced.

PropTrack’s senior economist, Anne Flaherty, noted that while increased investor activity has helped to moderate rental price growth, the market continues to be challenging for renters, who face intense competition. National rents have risen by 9.1% over the past year.

With building approvals at a decade-low and strong population growth driven by migration, the future of the rental market remains uncertain.