Queensland’s rental market has kicked off 2025 with even fewer options for tenants, as vacancy rates tighten across most of the state.
The latest REIQ Residential Vacancy Rate Report for March 2025 revealed that rental supply is deteriorating in both inner and outer suburbs, particularly in Greater Brisbane and regional hotspots.
The state’s overall vacancy rate has dropped from 1% to 0.9%, breaking three quarters of relative stability and confirming a return to worsening conditions.
“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,” said REIQ CEO Antonia Mercorella (pictured).
Of the 50 regions surveyed, 24 tightened, 12 held steady, and only 14 showed any relief. Alarmingly, 38 regions now report vacancy rates of 1.0% or lower, far beneath the REIQ’s healthy benchmark of 2.6–3.5%.
Even in tight markets, letting activity has slowed, highlighting a worrying disconnect.
“However, despite these results, property managers are reporting more subdued letting activity, increased days on market, and lessors being more careful with tenant selection,” Mercorella said.
“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.”
Among the most extreme data points:
At the other end of the spectrum, Noosa recorded a rise to 2%, the highest in the report, though still tight relative to affordability.
“Vacancy doesn’t automatically equate to accessibility,” Mercorella said.
Mercorella said Queensland’s persistently tight rental market reflects long-term underinvestment in housing supply, exacerbated by strong population growth.
The March ABS building approvals data reflects this concern. Queensland needs 4,100 approvals per month to meet National Housing Accord targets, but only 3,116 were approved in March.
“There’s no silver bullet, but the solution lies in one thing: more housing,” Mercorella said.
“Whether it’s investing in enabling infrastructure, land release, or planning reforms, all levels of government must work together to ensure that there are enough properties available to meet demand.”
Mercorella said the market is poised for more long-term planning now that the latest tenancy law reforms (effective May 1).
“With tenancy legislative change and the federal election result behind us, and the Reserve Bank’s next cash rate decision in the next fortnight, the REIQ expects greater certainty to return to the market – encouraging more long-term decision making from buyers, sellers, and investors.”
