Queensland rental crisis hurts tenants and rewards investors

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Queensland rental crisis hurts tenants and rewards investors

It’s a sad situation for people who need affordable accommodation in Queensland as rental crisis pushes people to the brink.

On the other side of the fence, it’s a fruitful time for those who are fortunate enough to own rental properties as their rental yield increases and financial security comforts them.

Capital city rents have skyrocketed in the past year by around 15% in places like the Gold Coast and Brisbane, and even far North Queensland has seen big increases as Queensland becomes a very popular destination for migrating Australians from the south.

Vacancies have plummeted, and in some parts of far North Queensland there were no properties to rent in March while the majority of the state had a vacancy rate around 0.5%

The national vacancy rate fell to 1% in March when there were just 38,868 vacant rentals nationwide, down from 43,844 in February, and there are serious warnings that the worst is yet to come as homelessness sadly increases.

Brisbane’s vacancy rate was worse than the national average at 0.7% which is half that of a year ago.

The lack of properties, and the added crisis of the building industry not being able to construct properties due to supply chain hold ups and increased pricing has added to the overall crisis in housing where both renting and buying a property are out of reach for many people.

The vacancy rates fell in Sydney, Melbourne and Brisbane, 1.6%, 1.9% and 0.7% respectively.

Brisbane, the Gold Coast and many other Queensland destinations had rent increases which were was the highest nationally on a percentage basis.

There are many townships recording zero vacancy rates and it’s obvious that homelessness will increase with State Governments needing prop up their rental assistance as the Federal Government sites on it’s hands.

The REIQ has tried to address the issue by campaigning for the Government to provide incentives to allow holiday rentals to move into the permanent rental pool but in many cases these properties are not considered appropriate.

The issue in Southeast Queensland has also been impacted by the recent floods which forced people out of their homes and into rentals.

Queensland's vacancy rates are:

• Cairns’ 0.6%
• Central Queensland 0.4%
• East Gold Coast Hinterland 0.6%
• Gold Coast 0.4%
• Brisbane 1.1%
• Ipswich 0.5%
• North Queensland 0.8%
• Central Queensland Coast 0.6%
• Far North Coast 0%
• Sunshine Coast .05%
• Toowoomba 0.3%

It’s a sad situation when the wealthy rub their hands together and enjoy their nice warm beds, while their fellow Australians who are not so fortunate suffer in the streets with no shelter, but our Federal Government needs to take control to assist people in need of affordable housing, and they need to do it now.