Australia's housing crisis has reached a new low, with the national vacancy rate dropping to a record 0.7%, according to Domain's February Vacancy Rates Report. Chief of Research and Economics Nicola Powell described the situation as 'needle in a haystack type stuff', highlighting extreme conditions for renters across the country.
Capital cities like Canberra and Darwin have slightly higher vacancy rates at 1.3%, but Powell noted that even these are still technically landlord markets. The record low vacancy rates are driven by rapid population growth, rising property prices, and a shortage of supply, leaving more renters stuck in the market.
The supply issue is exacerbated by a slump in building approvals, which fell 1% in January after a 10.1% drop in December, according to the Bureau of Statistics. CoreLogic's Tim Lawless said construction companies are reluctant to build due to rising costs and tight labour capacity, making it difficult to turn a profit.
Detached home approvals slid 9.9% in January to an 11.5-year low, with materials costs remaining high. The government has committed to building 1.2 million new homes over five years, but experts say speeding up approvals and reducing red tape at the council level is crucial.
Melissa Neighbour of Sky Planning emphasized the need to loosen planning controls to allow more sites to be developed. Meanwhile, Domain data shows average views per rental listing decreased in February, indicating fewer people are inspecting properties, which may reduce competition but also reflects affordability constraints.
