Why does Australia continue to have a rental crisis?
Of course, accelerating dwelling prices have made buying a home expensive, and now with rising interest rates, prohibitive.
Despite what government incentives have to offer, first time home buyers’ will decline further over the coming years.
This is evident in the table below which shows fewer first time home buyers in the mix.
Many buyers, including first-timers, brought their buying decisions forward over the past 12 to 18 months.
It is not until we see immigration rise – and then only after a few years of high overseas migration – will first home buyers rise up the pecking order.
It is worth noting that the investment interest rate is largely steady, with a 20% market share of the established market and 30% of the new housing space.
But one of the things further exhausting the rental housing supply is that some 50% of the homes listed for sale across Australia at present are being sold by investors, whilst investors represent between 20% to 30% of buyers.
This dislocation is more noted in regional markets, where investors represent some 75% of those selling, yet investor buyer interest is much lower, at around 35%.
Little wonder regional vacancy rates remain tight, and in many locations, are still falling.
Finally, it is not surprising to see more expats and foreigners in our buying mix.