The Australian rental market showed signs of stabilising in July as more property investors re-entered the market, offering renters slightly more options after a period of record-low vacancy rates. Data from PropTrack revealed a small decline in the national rental vacancy rate to 1.42%, driven by regional areas, while capital cities remained steady at 1.47%.

Over the past three months, rental supply has improved, with vacancy rates rising by 0.18 percentage points. This increase has been most notable in six of the eight capital cities. Despite these improvements, the market remains tight, with vacancies still at half the rate considered balanced.

PropTrack’s senior economist, Anne Flaherty, noted that while investor activity has helped slow rental price growth, the market remains challenging for renters, who continue to face fierce competition. Renters are still seeing prices rise, with national rents increasing by 9.1% over the past year.

With building approvals at a decade-low and continued strong population growth driven by migration, the rental market’s future remains uncertain.