Rental relief in Qld means more first homeowners in 2026

Rental relief in Queensland will depend on boosting first home ownership levels, the state’s real estate industry body says.

A December 2024 quarterly rental vacancy rate report from the Real Estate Institute of Queensland (REIQ) found that between the third and fourth quarter last year, the rental vacancy rate in seven out of 50 local council areas had tightened, stayed the same in 13 other areas and only eased slightly in 30 areas.

The REIQ classifies a ‘healthy’ vacancy rate at 2.6-3.5% but the latest report reveals a vacancy rate of 1% or less in 33 council areas.

REIQ CEO Antonia Mercorella says there are renters wanting to buy a home “but may need a leg up onto the ladder”.

“It’s Queenslanders in the 25-39-year-old age bracket who have seen the largest declines in home ownership rates,” she says.

“They’re demonstrating they can reliably pay the rent (sometimes at a rate comparable to mortgage repayments) but are finding it challenging to save for a home deposit at the same time, particularly given sales prices are also on the rise.”

RENTAL VACANCIES

Mercorella says there with almost 59,000 residents on the social housing waitlist in a state with a rental population higher than the national average (36%).

“These persistently low vacancy rates being experienced in many parts of the state show there is significant strain on our rental housing stock,” she says.

“We all need a roof over our heads whether we rent it or own it,” she says.

“It’s like a game of ‘musical chairs’: when rental supply falls short, it’s the most vulnerable in our community left standing.”

Mercorella says “ambitious goals” are need to lift home ownership levels with the state’s current rate of 64% is the lowest of any state.

“It’s time for a reset to help ease rental market pressures. By helping more first home buyers transition from renting to owning a home, it lightens the load on the rental market by alleviating some of the demand-side pressure.”

She applauded state government initiatives such as shared-equity schemes and first home buyer stamp duty relief but wants to see more.

“Speeding up new housing supply is critical because the reality is there is a lot of catching up to do and there are still strong headwinds coming,” she says.

Mercorella says that to meet the state’s nationally agreed construction housing target, 49,000 new dwellings are needed every year; only 34,000 were built over the 12 months to September.

“With a huge pipeline of infrastructure projects and ongoing labour workforce shortages, we expect to see tradies and their families moving to Queensland – many of them will be looking to rent,” she says.