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Australia’s vacancy rate continues to tighten as tenants are being squeezed by housing pressures, with limited supply and price growth contributing to the crisis.
New data has shown that Australia’s vacancy rate has fallen further in July as different pressures strain the property market, including supply constrains and rental price growth.
The national vacancy rate has fallen to 1.2 per cent, down from 1.3 per cent in June 2025, and 1.3 per cent from July 2024, according to the latest SQM Research data.
The findings mean there were only 37,863 rental vacancies nationwide in July, compared to 39,027 in June, and 39,701 a year ago.
SQM Research observed that tenants are facing sustained pressure, particularly in Sydney, Brisbane and Perth, where vacancy rates are 1.5 per cent, 0.9 per cent and 0.7 per cent, respectively.
Meanwhile, Melbourne and Adelaide’s vacancy rates reached 1.8 per cent and 0.8 per cent, respectively.
“While Melbourne and Adelaide show signs of stabilisation, the overall picture suggests landlords continue to hold the upper hand, with limited supply driving competition and rental price growth,” SQM Research said.
“As the spring leasing season approaches, all eyes will be on whether new housing supply can ease the squeeze – or if renters will face another round of tightening conditions.”
Further, in the week ending 12 August, advertised rents rose nationally, while multiple capital cities saw sharp annual increases.
The latest SQM Research Weekly Rents Index revealed the national combined rent average rose to $651.60, up $1.0 over the rolling month, and 4.5 per cent year-on-year.
The capital city rental average also jumped to $748.02, marking a 4.3 per cent annual increase.
Managing director of SQM Research, Louis Christopher, said that vacancy rates remain tight across most capital cities, resulting in upward pressure on rents.
“While there are short-term fluctuations – particularly in Perth and Canberra – the broader trend is clear: rental affordability is deteriorating, especially in Sydney, Brisbane and Hobart,” he said.
“Unless we see a meaningful uplift in rental supply, particularly in the inner and middle rings of our major cities, the market will remain challenging for tenants heading into spring,” Christopher concluded.
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