Vacancy rates hit 4.5 year high but reprieve likely to be short-lived

Australia's tight rental market has shown some signs of improvement with vacancy rates reaching the highest level in four and a half years, though budget changes threaten to derail the progress as investors tap out of the property market.The latest Market Insight report by realestate.com.au has found the national rental vacancy rate rose 0.2 percentage points to 1.5% in July, the highest level since February 2022. Source: realestate.com.au Market Insight: Vacancy RatesWhile vacancy rates remain below the 2.5-3.5% level that indicates a balanced market, realestate.com.au senior economist Anne Flaherty said choice for renters had improved.“The volume of available rentals is up in every capital city and regional area compared to three months ago,” Ms Flaherty said.She said increased investor activity over the past 12 months was behind the recovery, though the slight reprieve for renters was unlikely to last.Jump ahead to see where vacancy rates are sitting in each state.It comes as major changes to negative gearing and the capital gains tax discount announced in this year’s federal budget have caused many investors to pause their property purchasing decisions.Lending data by the Austr...