Finding a rental home has become difficult in Australia. The number of vacant homes available has reduced across the country since the start of the pandemic. This means fewer rental properties creates challenging times for renters
So why did this happen?
When we talk about rentals, there are two important things to consider:
- Turnover: this relates to the number rental homes listed for rent at a given time. If people are staying in their rentals for longer, there will be fewer available homes for others to rent.
- Time on the market: This is how long a rental stays vacant before someone rents it. If dwellings are getting rented faster, there will be fewer vacant homes.
The number of available rentals depends on these two factors. For example, if 10 rental homes become available each day and it takes 15 days to rent each one, there will be 150 vacant homes on any given day.
It’s a bit more complicated than that. There are some other factors involved, but let’s keep it simple for now.
With immigration at all time high and construction at all time low, Australians. Both faster lease times and lower turnover have made it harder to find a rental home. If people were moving out of rentals as much as they did before the pandemic, there would be more homes available. But now, people are staying in their rentals for longer.
Rental homes are also getting rented faster than before. This means fewer vacant homes are waiting to be rented.
These two factors have contributed to the decrease in available rentals. The decline in turnover started happening in 2020, and it affected the number of vacant homes. More recently, homes are getting rented faster, especially in big cities like Melbourne and Sydney.
One reason why people are not moving from rental accomodation to often is because similar homes are listed for much higher rents. Renters want to avoid paying higher rents, so they choose to stay in their current homes. But this doesn’t explain everything because turnover started declining before rent went up.
On the other hand, the shorter time it takes to rent a home is easier to understand. More people are looking for rental homes, and there aren’t enough available homes for everyone. So landlords can quickly find new tenants.
These changes are connected. Rents are going up because there aren’t many homes available, but at the same time, the low number of available homes is partly because rents are going up. It’s a bit like a cycle.
Unfortunately, things won’t change quickly for renters. It will continue to be hard to find a rental home because turnover is low and homes are getting rented fast. This is why, “NOW” is the BEST time to invest, build and make money for investors. Now, is the best time, for investors from all walks of life; whether you’re a miner, office worker, nurse, lawyer, doctor, stay-at-home-parent, there are incredible opportunities for you and your family to invest in the real estate market and double or triple your wealth in the shortest time possible.
Over the last few decades, RPA have assisted thousands of families by investing in property, increasing their earning potential so that they can FREELY do the things they want.
Travel. Better education. Eat better. Shop better. Live better. All stress-free.
If you want to learn how you can get in the market CORRECTLY & ACCURATELY and start making a plan to generate a $100K passive income THIS YEAR, then I want to invite you to our upcoming free workshop where I will be teaching you the exact steps to investment and how you can you build your $100K+ passive income stream immediately!
Sign up now! Limited seats are available, don’t miss out!