Vacancy Rate

The vacancy rate measures the proportion of rental properties in a given market that are unoccupied at a point in time, expressed as a percentage. It's one of the most useful leading indicators for property investors because it captures the balance between rental supply and tenant demand.

A vacancy rate below 2% is generally considered tight: tenants have limited options, properties rent quickly, and landlords can push rents higher at each review. Between 2% and 3% is typically considered balanced, favouring neither side strongly. Above 3% signals an oversupplied market where tenants have choice, rents can stagnate or fall, and properties may sit empty for weeks between tenancies.

Australian vacancy rates vary widely. The national average in 2026 sits around 1.5%, but individual suburbs range from under 0.5% in tight inner-city markets to over 5% in oversupplied apartment corridors or declining regional centres. Investors should always check the suburb-level vacancy rate rather than relying on city or national averages; the variation is too wide to ignore.