How Cyclone Alfred is Shaking Up Brisbane’s Rental Market

Brisbane’s rental market is already tight, with vacancy rates hovering around record lows.

Now, with the aftermath of Tropical Cyclone Alfred, tenants and landlords are facing new challenges.

While the damage isn’t as bad as first feared, the storm has still left its mark, displacing tenants, putting extra pressure on available rentals, and reinforcing the importance of disaster preparedness.

Let’s break it down.

Brisbane’s rental market was already stretched

Before Cyclone Alfred arrived, Brisbane’s rental market was already one of the tightest in Australia.

Vacancy rates have been hovering around 1%, making it incredibly difficult for tenants to secure a property.

When a natural disaster hits, even a relatively moderate one, it can send shockwaves through an already strained system.

Some properties in Hervey Bay were left uninhabitable, but Brisbane fared better, with most damage limited to roofs, gutters, and fences.

However, even minor damage can push tenants out of their homes temporarily, putting extra demand on an already limited supply of rentals.

Short-term rental pressure

When tenants are forced to leave storm-damaged properties, they need somewhere else to go.

In a market with almost no slack, this means heightened competition for available rentals, which can lead to short-term rent hikes.

Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella pointed out that even temporary displacement can worsen an already severe rental crisis:

“Any time properties are removed from the market, even briefly, it tightens supply and creates added pressure on prices."

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In other words, tenants struggling to find affordable housing may face even tougher conditions post-cyclone.

What landlords and tenants need to know

In times like this, both landlords and tenants need to understand their rights and responsibilities.

• Landlords are responsible for ensuring their properties remain safe and habitable. If a storm causes structural damage, it must be fixed promptly. If repairs take time, tenants may be eligible for temporary rent reductions or alternative housing options (Residential Tenancies Authority, QLD).
• Tenants need to protect their belongings. While landlords’ insurance typically covers the building, it doesn’t protect tenants’ personal items. REIQ advises all renters to have contents insurance to safeguard against loss or damage during extreme weather events.

The role of insurance and disaster preparedness

Cyclone Alfred is a reminder of why landlords and tenants alike need to be proactive about disaster preparedness.

Queensland is no stranger to extreme weather, and as climate change continues to bring more frequent and intense storms, property owners must take steps to mitigate risk.

Mercorella emphasised:

"The best way to protect your investment is to ensure you have adequate insurance, understand your obligations, and have a plan in place for responding to disasters.”

Looking Ahead

While Cyclone Alfred’s immediate impact on Brisbane’s rental market might not be catastrophic, it’s another factor compounding an already tight market.

With limited rental stock, even small disruptions can have big consequences.

So, what can you do?

• Landlords should check their insurance coverage and ensure their properties are well-maintained to withstand extreme weather.
• Tenants should have contents insurance and be aware of their rights in the event of displacement.
• Investors and policymakers need to acknowledge that climate resilience is now a key factor in housing markets.

While the worst of Cyclone Alfred may have passed, the aftershocks in Brisbane’s rental market are still being felt.

And with Queensland’s storm season far from over, this won’t be the last time landlords and tenants find themselves navigating the challenges of extreme weather.