Queensland’s rental market remains in a state of gridlock, with the latest figures from the Real Estate Institute of Queensland (REIQ) showing little movement in vacancy rates and few signs of relief on the horizon.
According to the REIQ’s September Quarter 2025 Residential Vacancy Rate Report, the statewide vacancy rate has held firm at 1.0 per cent, which is well below the healthy range of 2.6 to 3.5 per cent that supports balanced housing mobility and population growth.
Of the 50 local government areas and sub-regions surveyed, 38 recorded vacancy rates at or below 1.0 per cent. Nearly half (23) tightened over the quarter, 15 remained steady, and just 12 relaxed slightly compared to June.
‘A rental traffic jam’
REIQ CEO Antonia Mercorella said the figures demonstrate an entrenched rental squeeze that continues to restrict choice and movement across the state.
“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.”
She said that while longer tenancies can sometimes be seen as a positive indicator of stability, they can also reflect a lack of options.
“When tenants sign a lease or renew out of necessity instead of preference, it’s a sign that scarcity is seizing up the market and contributing to inefficiencies,” she said.
Property managers continue to report intense interest in available rentals, with many applicants applying for multiple properties at once.
“Property managers are still seeing high levels of rental applications for properties, though many are ‘backup’ options, with applicants often applying for several properties at once in hopes of securing one but are not always proceeding when successful,” Ms Mercorella added.
Tenancy trends shifting
Residential Tenancies Authority (RTA) data shows the median length of tenancies for houses rose to 21.1 months in FY24/25, up slightly from 20.8 months the previous year. For units, the median held steady at 18.2 months.
Ms Mercorella said lessor sentiment is also shifting amid mounting operating costs, ongoing legislative change, and tighter market conditions.
“In a tight market, we’re seeing higher instances of tenants who are accepting lease terms that they don’t intend to see through, 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.”
Conditions remain uneven
While the overall picture points to a crisis of availability, Ms Mercorella noted that not all pockets of the state are under the same pressure.
“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.”
Little change expected in coming months
Looking ahead, Ms Mercorella said renters should not expect much change before year’s end.
“We’re seeing fairly constant rental activity spread evenly throughout the year — the traditional seasonal peaks and troughs have flattened out,” she said.
The latest figures, she added, underline the state’s ongoing supply and demand imbalance.
“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,” Ms Mercorella said.
“Without policy and planning settings that actively unlock supply, and without fair and balanced rental legislation that encourages investors, this gridlock will persist.”
Tightest and weakest markets
Cook (0.0%) remains the state’s tightest rental market, joined by Charters Towers and Goondiwindi (both 0.1%). Banana (0.2%) and Maranoa (0.3%) are close behind.
Major population hubs continue to record critically low vacancy rates, including Greater Brisbane (0.9%), Brisbane LGA (1.1%), Ipswich (0.8%), Logan (0.8%), Redland (1.0%), and the Sunshine Coast Statistical Division (1.0%).
Regional centres tell a similar story: Toowoomba (0.5%), Cairns (0.7%), Rockhampton (0.8%), Townsville (0.8%), and Mackay (0.9%) all sit well below healthy thresholds.
By contrast, only a handful of markets offered some breathing room this quarter, including Noosa (1.9%) and Gladstone (2.2%). The Bay Islands (4.0%) and Isaac (5.5%) were the only two regions classified as “weak.”
Quarter-by-quarter movements
While most quarterly changes were minor, the Sunshine Coast sub-regions experienced some of the sharpest tightening. Maroochy Coast (0.9%), Hinterland (0.8%), and Noosa (1.9%) each fell by 0.5 percentage points.
Other regions recording smaller declines included the broader Sunshine Coast (1.0%), Banana (0.2%), Cassowary Coast (1.0%), and Central Highlands (0.9%).
Fifteen regions remained unchanged, including Greater Brisbane (0.9%), Ipswich (0.8%), Logan (0.8%), Redcliffe (1.0%), Gold Coast (1.0%), Toowoomba (0.5%), and Cook (0.0%).
Slight increases of just 0.1 percentage points were observed in Brisbane (1.1%), Redland (1.0%), Bundaberg (1.0%), Mackay (0.9%), and Rockhampton (0.8%).
Gladstone (+0.4pp), Bay Islands (+0.3pp) and Isaac (+1.3pp) saw the most notable easing, though these were exceptions. Local agents in Gladstone report rental demand has plateaued, with more listings and longer days on market suggesting a mild shift in balance.
Fast facts: September Quarter 2025
- Statewide vacancy rate: 1.0%
- Tightest markets: Cook (0.0%), Charters Towers (0.1%), Goondiwindi (0.1%)
- Highest vacancy rates: Isaac (5.5%), Bay Islands (4.0%), Noosa (1.9%)
- Largest quarterly declines: Maroochy Coast, Hinterland, Noosa (-0.5pp)
- Largest rises: Isaac (+1.3pp), Gladstone (+0.4pp), Bay Islands (+0.3pp)
The REIQ continues to classify rental markets into three categories: tight (0–2.5%), healthy (2.6–3.5%), and weak (3.6% and above).
