According to the Real Estate Institute of Queensland’s (REIQ) latest Residential Vacancy Rate Report, the statewide vacancy rate has slipped from 1.0 per cent to 0.9 per cent, breaking a run of steady conditions.
Of the 50 regions tracked, 24 tightened, 12 held steady, and only 14 saw any relief.
More concerning is that 38 out of 50 local government areas now report vacancy rates of 1.0 per cent or less, far below the REIQ’s healthy benchmark of 2.6–3.5 per cent.
Brisbane LGA’s vacancy rate dipped to 1.0 per cent, with surrounding regions like Pine Rivers, Redcliffe, and Moreton Bay now sitting between 0.6 per cent and 0.7 per cent. Inner Brisbane saw a modest easing to 1.2 per cent but remains tight by market standards.
The situation is even more dire in some regional areas, with Cook and Goondiwindi both recording 0.0 per cent vacancy, meaning virtually no rental availability.
A further 16 regions – including Maryborough, Toowoomba, Caloundra Coast, and the Southern Downs – reported rates at or below 0.5 per cent.
REIQ CEO Antonia Mercorella said the pressure continues to mount particularly in Brisbane and surrounding areas.
“The pressure continues to mount in our inner and outer suburban areas – particularly in Brisbane and surrounds, which recorded one of the most notable tightening movements this quarter,” Ms Mercorella said.
Despite the tight market, property managers are reporting more subdued letting activity and increased days on market.
“This paradox of lower activity despite a tight market reflects some fatigue on both sides: many renters are being priced out, stretching too far, or grouping up to rent, while lessors are holding firm on terms and expectations due to rising costs and more onerous legislative requirements,” Ms Mercorella said.
Only a few areas showed any improvement. Noosa’s vacancy rate rose to 2.0 per cent, making it the most significant relaxation in this quarter’s report.
The Bay Islands (2.5 per cent) and Isaac (3.2 per cent) remain the only regions in the ‘healthy’ range, but these areas are exceptions rather than the rule.
The March 2025 building approvals data released by the ABS revealed that the pipeline of new housing construction is well below the required volume to meet the National Housing Accord target.
For Queensland to contribute its fair share, the pipeline must include 4,100 new dwellings each month. However, in March 2025, there were only 3,116 dwellings approved.
Ms Mercorella said a structural undersupply was the key driver of the crisis.
“Queensland’s stubbornly tight rental conditions are symptomatic of years of underinvestment in housing supply, compounded by rapid population growth,” she said.
With the last phase of rental reforms for Queensland having come into effect from May 1, 2025, and the Federal election result behind us, the REIQ expects greater certainty to return to the market, potentially encouraging more long-term decision making from buyers, sellers, and investors.
“There’s no silver bullet, but the solution lies in one thing: more housing,” she said.
“Until all levels of government focus on cutting red tape, fast-tracking approvals, and removing barriers to private investment, these numbers will not meaningfully improve.”
