QUEENSLANDS rental market has started 2025 with even fewer options for tenants, as vacancy rates continue to tighten across most of the state in the March 2025 quarter, with the number of tightening regions outweighing those that eased.
According to the Real Estate Institute of Queensland’s (REIQ) latest Residential Vacancy Rate Report, released this month, 24 of the 50 regions tightened, 12 held steady, and just 14 saw any relief.
The statewide vacancy rate has slipped from 1.0 to 0.9 per cent – breaking a three-quarter period of steady conditions, and reinforcing the entrenched strain on rental supply.
Notably, the pressure is being felt across most of the state, with 38 out of 50 local government areas (LGAs) and subregions reporting vacancy rates of 1.0 per cent or less – this puts it firmly in “tight” territory and far below the REIQ’s healthy benchmark of 2.6-3.5 per cent.
REIQ CEO Antonia Mercorella said Queensland’s rental market had started 2025 with even fewer rental options, with vacancy rates tightening in nearly half of the report’s regions.
“The pressure continues to mount in our inner and outer suburban areas – particularly in Brisbane and surrounds, which recorded one of the most notable tightening movements this quarter,” Ms Mercorella said.
“However, despite these results, property managers are reporting more subdued letting activity, increased days on market, and lessors being more careful with tenant selection.
“This paradox of lower activity despite a tight market reflects some fatigue on both sides: many renters are being priced out, stretching too far, or grouping up to rent, while lessors are holding firm on terms and expectations due to rising costs and more onerous legislative requirements.”
Brisbane LGA’s vacancy rate dipped to 1.0 per cent, with surrounding regions like Pine Rivers, Redcliffe and Moreton Bay now sitting between 0.6 and 0.7 per cent. Inner Brisbane (0-5km radius) saw a more modest easing to 1.2 per cent, but remains tight.
The ABS’s trend estimate for building approvals has fallen from 3120 in July 2024 to 2957 in March 2025.
“Queensland’s stubbornly tight rental conditions are symptomatic of years of underinvestment in housing supply, compounded by rapid population growth,” Ms Mercorella said. “There’s no silver bullet, but the solution lies in one thing: more housing.”
