Key takeaways

In highly desirable Australian suburbs, finding rental properties has become increasingly difficult due to limited supply and fierce competition among tenants, leading to soaring rental prices.

The COVID-19 pandemic has significantly influenced rental market dynamics, with inner-city suburbs experiencing the most tightening due to factors such as smaller household sizes, urban revival, and a surge in migration and student arrivals.

Suburbs like Dee Why, Maroochydore, and Coogee are facing exceptionally tight rental markets, with vacancy rates as low as 0.32%, making it extremely challenging for renters to find suitable accommodation.

Despite the tight conditions in major cities, some regional areas and suburbs on the outskirts are seeing an easing of rental market pressures, offering renters more options and value. Suburbs like Taylor and Denman Prospect in Canberra are benefiting from recent housing developments, providing relief to renters.

While challenges persist, there are signs of the rental market rebalancing. Factors such as increasing household sizes and growing investor interest may contribute to easing conditions in the future, providing hope for renters facing the current crisis.