The nation’s capital cities are all experiencing a similar rental market trend, but in Brisbane, it is a totally different story. Here’s why.
According to real estate giant Ray White, we’re seeing a national slowdown in rental growth. Average household sizes are returning to pre-COVID levels, creating additional capacity in the market.
While housing supply remains challenging, more homes are being built, and migration has stabilised. The national data shows rental growth declining from peaks of over 15 per cent after borders reopened to around 5 per cent currently.
One exception
This cooling trend is consistent across most Australian capital cities, with Sydney’s growth dropping from 11.9 per cent to zero per cent, Melbourne falling from 10.2 per cent to 4.5 per cent, and Perth declining from a whopping 18.2 per cent to 5 per cent. However, Brisbane stands as the notable exception, with rental growth still accelerating from 4.3 per cent to 8.3 per cent.
Brisbane continues to experience high population growth from both interstate and international migration, creating persistent housing demand when other cities are seeing stabilisation. This pressure is compounded by construction constraints that exist elsewhere but are more intense in Brisbane.
Brisbane’s construction sector faces extraordinary challenges on multiple fronts. Major infrastructure projects are consuming significant building capacity that might otherwise be directed toward residential development. At the same time, a boom in commercial construction has further diverted limited resources away from housing. The result is a perfect storm of high demand meeting constrained supply.
Adding to these woes, Brisbane has seen an unusually high number of construction companies entering receivership, delaying completions. This combination of factors has created a unique situation where Brisbane’s rental market continues to tighten while other cities find relief.
While most Australian cities can expect some relief from the rapid rental increases of recent years, Brisbane renters will likely face continued pressure. The unique combination of population growth, construction limitations, and now natural disaster recovery suggests that Brisbane’s rental growth will remain an outlier in the national trend toward moderation.
