Time for a Reset as Queensland’s Rental Market Remains Under Pressure

Queensland’s rental market remains under intense pressure, with vacancy rates continuing to sit well below healthy levels across most of the state, according to the Real Estate Institute of Queensland’s (REIQ) December Quarter 2025 Residential Vacancy Rate Report.

The statewide vacancy rate is holding at just 1.0 per cent, far short of the 2.6 to 3.5 per cent range the REIQ considers balanced. Alarmingly, 33 of the 50 local government areas and sub-regions tracked recorded vacancy rates of 1.0 per cent or lower, underscoring the ongoing shortage of available rental housing.

REIQ CEO Antonia Mercorella said the results reflected another year of “slim pickings” for renters, particularly as Queensland’s rental population sits above the national average at 36 per cent.

“We all need a roof over our heads whether we rent it or own it,” Ms Mercorella said.

“These persistently low vacancy rates being experienced in many parts of the state show there is significant strain on our rental housing stock. It’s like a game of ‘musical chairs’ - when rental supply falls short, it’s the most vulnerable people in our community who are left standing.”

Ms Mercorella said easing rental pressure required a two-pronged approach: increasing housing supply and supporting renters who are ready to transition into home ownership.

“The REIQ welcomes Government initiatives such as shared-equity schemes to help close the deposit gap and first home buyer stamp duty relief,” she said.

“It’s time for a reset to help ease Queensland’s rental market pressures.”

While some regions recorded slight easing over the quarter, most of Queensland remains firmly in tight territory. Regional centres including Townsville, Cairns, Rockhampton and Bundaberg all recorded vacancy rates of around 1.0 per cent or less, while Cook and Charters Towers remained the tightest markets in the state.

With population growth, major infrastructure projects and ongoing workforce shortages expected to continue driving demand, the REIQ says accelerating new housing construction will be critical to restoring balance to Queensland’s rental market.

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