Vacancy rates tighten to 0.8% in October

Things just got worse for tenants around Australia with vacancy rates dropping to 0.8%. Correct. That is less than 1%. In perspective, for every hundred investment properties in a suburb, there is less than one to rent.

“This record-low vacancy rate has persisted for the second consecutive month, driven by a surge in overseas migration and soaring property prices, which have intensified the demand for rental properties at a time when supply is woefully inadequate,” explained Dr. Nicola Powell, the chief of research and economics at Domain.

Vacancy rates are not anticipated to soften anytime soon. With the government making a total mess of running the economy no new supply is being brought to the market. With another almost 500,000 migrants coming to Australia over the next 12 months, things are only going to get worse.

This just so happens to be great news if you are an investor. Rents are skyrocketing and values are also on the increase. It is all just a simple case of supply vs demand. Demand is strong and supply is about 70,000 houses short.