Vacancy rates continue to remain tight throughout Australia, falling again in January to just 1%.

SQM Research data says vacancy rates reduced by 0.5% in January, which is traditionally a busy month in the rental market as workers and students relocate for the start of the business and school year.

The drop means there are only 31,822 available for rent, and SQM Research managing director, Louis Christopher predicts further tightening. “It looked like there was an easing in the vacancy rate at the end of 2024 and we were coming out of the rental crisis, but that’s not the case now,” he says. “The rental vacancy rates have tightened up once again to some of the worst numbers we’ve seen during this rental crisis.”

Christopher says the vacancy rate in Hobart is just 0.3%, which is the lowest since SQM Research began keeping records in 2005. The smaller capital cities are feeling the pinch with Perth (0.4%), Adelaide, (0.5%) and Brisbane, (0.8%) also below the national level. Darwin is 1.1%, Canberra, 1.3%, Sydney, 1.4% and Melbourne 1.5%

Despite the tightening of vacancy rates, the median average weekly asking rent of houses is unchanged at $718, and units are down 1.2% to $557.