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Australia's rental market continues to face intense pressure as the housing shortage drives competition and pushes many residents toward more affordable regional areas.
Net overseas migration contributed 446,000 people to Australia's population in the year ending June 2024. While this figure is moderating from peak levels, the continued population growth is maintaining pressure on both rental and purchase markets.
Regional Shift
The rental crisis in major cities is driving a significant demographic shift, with many Australians relocating to regional areas where housing remains more affordable. This trend is creating new growth corridors and investment opportunities outside traditional capital city markets.
Investment ImplicationsFor property investors, the tight rental market presents both opportunities and challenges. While rental yields are improving in many areas, increased regulations and taxes in some states are affecting investor sentiment.
Policy ResponseState and federal governments are implementing various measures to address rental affordability, but supply constraints mean market pressures are likely to persist through 2025 and beyond.
Despite ongoing affordability challenges, Australian property prices are forecast to continue their upward trajectory through 2025, driven by fundamental supply and demand imbalances.
After being the hardest hit capital city in the post-COVID property cycle, Melbourne is showing early signs of market recovery that could present opportunities for strategic buyers and investors.
Perth continues to outperform the national property market, with strong economic fundamentals and improved affordability driving sustained price growth.
Australian borrowers are preparing for a potential refinancing boom as interest rate cuts create opportunities to secure better loan terms and reduce mortgage stress.
Book a no-obligation consultation with one of our mortgage specialists today and take the first step toward finding your perfect financing solution.
