Australia’s rental market is under growing strain as more investors choose to sell. According to the 2025 Annual Property Investor Sentiment Survey from the Property Investment Professionals of Australia (PIPA), 16.7% of investors sold at least one property in the past year. That figure has risen steadily from 12.1% in 2023 and 14.1% in 2024.

PIPA Chair Lachlan Vidler says the trend is troubling. “We’re seeing a growing number of long-term investors walking away. The implications for renters are severe,” he says.

When investor-owned properties are sold, only 42% are purchased by another investor. That means more than half are leaving the rental pool altogether, reducing the available stock.

Vidler says the exit is being driven by a mix of rising costs, tax burdens, and policy uncertainty. “The private rental market is losing stock at a time when demand is surging. Policy settings need to provide stability, otherwise the exodus will continue,” he warns.

The survey reflects a broader sentiment that the rental supply squeeze is unlikely to ease soon, with tenants ultimately paying the price through higher rents and fewer choices.