Queensland rent crisis
Rental vacancy remained at a virtual standstill across Queensland, with rates hovering at a measly 1 per cent or less in 38 of the state’s 50 regions.
The Real Estate Institute of Queensland’s (REIQ) September Quarter 2025 report highlighted entrenched low supply, with too few new homes being delivered to meet demand.
Vacancies tightened since June in 23 of the state’s local government areas (LGAs) and sub-regions, while 15 stayed dormant, and just 12 improved compared to the previous three months.
Queensland is not building enough homes to meet supply
Greater Brisbane was at 0.9 per cent, Brisbane LGA 1.1, Ipswich 0.8, Logan 0.8, Redland 1.0, and the Sunshine Coast 1.0. Rates in regional Queensland were at 0.5 per cent in Toowoomba, 0.7 in Cairns, 0.8 in Rockhampton and Townsville, and 0.9 in Mackay.
REIQ CEO Antonia Mercorella said the market was in a state of “rental gridlock”, where tenants were renewing leases out of necessity rather than choice, freezing mobility and limiting options.
Longer tenancies and multiple “backup” applications reflected scarcity not stability, while new tenancy laws and rising costs had left owners less willing to absorb break-lease losses.
The report also noted uneven demand across price points, a flattening of seasonal trends, and ongoing supply-demand imbalance likely to persist without stronger policy intervention to unlock new housing.
Rental vacancy in Greater Brisbane hovered around 1 per cent. Picture: Nigel Hallett
Vacancy rates showed no signs of increasing to the REIQ’s healthy range of 2.6 to 3.5 per cent to support adequate housing mobility and population growth.
“Queensland’s rental market is like a traffic jam – many people are staying put because finding somewhere to move can be really difficult,” Ms Mercorella said.
“Even though the statewide vacancy rate hasn’t worsened, this entrenched tightness has created a kind of rental gridlock, where people are renewing, not necessarily because they want to, but because they don’t want to risk competing for somewhere new.
“Longer tenancies, while sometimes seen as a positive indicator of a healthy market, can also reflect a lack of choice rather than stability.”
REIQ head Antonia Mercorella said tenants were staying put rather than risk being locked out of the market
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Residential Tenancies Authority data shows the median length of tenancies for houses has risen to 21.1 months in FY24/25 (up from 20.8 months last year), while units held steady at 18.2 months (down only slightly from 18.3).
Ms Mercorella said lessor sentiment was also shifting amid ongoing tight conditions, rising operating costs, and legislative shifts which have largely left them picking up break lease bills.
“In a tight market, we’re seeing higher instances of tenants who are accepting lease terms that they don’t intend to see through [and] continuing to look for a preferred property to rent or to buy,” she said.
“Many owners are showing greater frustration over successive early break leases and have a reduced tolerance and financial capacity to absorb vacancy periods and foot the bill for new advertising and letting costs, with limited rent compensation.”
A $12.5m apartment building proposed under a build-to-rent scheme to help address the rental crisis
Ms Mercorella said not every market was experiencing crisis conditions.
“Higher price-point properties, lower quality stock, or niche segments may see listings remain for longer, as demand can be more price-sensitive or selective,” she said.
“Additionally, properties that are not priced in line with the market are struggling to find tenants.”
Ms Mercorella said conditions were unlikely to improve in the final quarter of the year.
“We need to be accelerating new builds, encouraging investment in the private rental sector, and supporting diverse housing models such as build-to-rent and smaller dwelling formats.”
Worst-ranked across the state was Cook at a shocking 0.0 per cent, then Charters Towers and Goondiwindi (both 0.1), Banana (0.2) and Maranoa (0.3).
Only a handful of areas showed significant relief, including Noosa (1.9 per cent) and Gladstone (2.2), as well as the only two “weak” markets in the state – Bay Islands (4.0) and Isaac (5.5).
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