Many rental market experts are claiming that the recent boom is well and truly behind us. While the data supports this view, the story it tells is much more nuanced. Vacancy rates are climbing, but remain very low; and growth in rents is slowing, but still higher than long-term average.

At the end of last year, many experts were predicting we’d soon see rental market conditions begin to ease. However, that’s not how things have played out – since December, growth in rents has gathered pace in most locations. Vacancy rates also continue to remain at, or near, record lows, and supply of new listings remains limited.

Rents have continued to increase in most locations, bringing the national median to a new record high. However, the growth rate is slowing, with most of the conditions that drove recent growth now softening. Most significantly, vacancy rates have eased slightly and further increases in availability are expected over the coming year.

Growth in the national median rent continues to slow, suggesting prices are starting to stabilise. However, new listings remain extremely limited, and the national vacancy rate has reached a new record low. This is making it even harder for renters to secure a new home and driving many to consider more cost-effective alternatives.

It appears that growth in rents is starting to slow, however, the growth rate remains well above the long-term average. This is largely being driven by the ongoing undersupply of new listings and increased demand due to record migration levels. Vacancy rates are also easing, with most locations seeing at least a slight increase over the last 3 months.

After seemingly starting to stabilise late last year, rent increases reaccelerated over the first 3 months of the year. Units saw the largest rise, particularly in Sydney and Melbourne, as net overseas migration reached record levels. Supply of new listings also continued to be limited and the national vacancy rate reached a new record low.