Did the rental market in Brisbane collapse?

The rental market in Brisbane faced significant challenges in 2022. Demand surged, internal migration reached a new record, property values rose by 38.1% since the COVID-19 outbreak in March 2020, and rents also increased by 23.0% during the same period. The rising cost of renting, especially for low-income tenants, has increased their risk of homelessness. In June 2022, the income proportion required for new leases in Brisbane reached 29.3%, the highest level since 2009. This data reflects the affordability issue of renting, as the proportion of rent to household income is increasing. As of the end of August 2022, the average weekly rent in Greater Brisbane was $530 AUD, a 13.3% increase compared to the same period last year. The rental vacancy rate is close to a historic low, with the monthly rental vacancy rate in Greater Brisbane recorded at 1.0% in August 2022, far below the 5-year average of 2.8%. This indicates a very limited availability of rental properties, intensifying competition in the rental market. In 2022, compared to the past five years, the number of rental advertisements decreased by 48%, further demonstrating the tight situation in the Brisbane rental market. Investors are selling properties when prices peak, which could lead to a shortage of rental supply. If investors sell properties to first-time buyers, this may alleviate some demand pressure in the rental market. However, if these investment properties are purchased by non-first-time buyers, such as those buying a second home, the likelihood of alleviating rental demand is lower. Discussion: What do you think are the main reasons for the tight rental market in Brisbane? What challenges do low-income tenants face in the rental market? What does this market environment mean for first-time buyers?