To anyone who has been paying attention to the rental market across Australia and on the Gold Coast, it probably comes as no surprise that there has been a shortage of affordable rental housing. Even though the market is beginning to cool off, there are some key things to know about the current rent crush. Let's take a look!
One of the major things that are impacting the rental market is the recently changed Queensland Housing Legislation Amendment Act 2021, which was introduced in October 2022. This rental law reform made some serious changes and amendments to the Residential Tenancies and Rooming Accommodation Act 2008, which is stage one.
The new legislation adds protections for renters, including:
Some of these land laws are putting landlords off of investing in rental properties, which may be contributing to the lack of supply.
According to RealEstate.com, "The number of investor-owned properties dropped significantly through 2020-2021 as landlords sold up, unnerved by the impact of Covid and potential mortgage lending conditions."
With more people moving to the state of Queensland, there is a landlord shortage. Now, with fewer investors on the market shopping for rental investments, the shortage is becoming an issue. The Property Investment Professionals of Australia (PIPA) reported that there are 30% fewer rental houses/apartments since the beginning of 2020, and 45% of investors have sold their rental investments in the past two years.
As demand rose in 2020 and continued through the next two years, rental prices got higher and supply dropped. As developers race to build more rental properties, supply is still short. This is a problem because more people are projected to move into Queensland from other states in Australia. In fact, the Property Council of Australia found that 220,000 people are expected to migrate into Queensland over the next five years.
All this sounds a little dark, but there are some bright spots in the rental market as we approach the new year. Some investors are expected to return to the Gold Coast, as the return on their investment could be attractive. The high demand could lure more rental investors or developers into the area.
If you're looking for your next rental spot, it's helpful to work with professionals who have their ears to the ground. A real estate agent can let you know when something in your price range and preference pops up on the market so that you don't have to do the heavy lifting yourself.
Are you ready to work with the best in the game? Connect with the Ray White Surfers Paradise rental specialists now!