Co-tenancy rises as rental supply remains constrained
Queensland’s rental market further tightened in the March quarter, with the statewide vacancy rate falling to 0.9%, according to the Real Estate Institute of Queensland (REIQ).
The figure was down from 1% in each of the previous three quarters and remained well below the REIQ’s healthy range of 2.6% to 3.5%.
The institute said 33 of the 50 local government areas and subregions it tracks recorded vacancy rates of 1% or lower. Compared with the December quarter, 24 markets tightened, 13 were unchanged, and 13 eased.
The result points to continued pressure on renters and limited available stock across much of the state.
Regional and agricultural areas remained among the most constrained markets. Cook again recorded a 0% vacancy rate, while Charters Towers and Goondiwindi were at 0.1%. Maranoa recorded 0.2%.
In south-east Queensland, Greater Brisbane posted a vacancy rate of 0.8%, Brisbane LGA 1.0%, Scenic Rim 1%, Toowoomba 0.7%, the Gold Coast 1.1%, and the Sunshine Coast 0.7%.
Some coastal and regional markets recorded small increases in available rental stock. Vacancy rates rose by 0.5 percentage points in both Maroochy Coast and Hinterland, by 0.4 percentage points in Hervey Bay, and by 0.3 percentage points in Noosa.
Resource-linked markets and the Bay Islands saw some of the largest falls. Isaac dropped by 0.6 percentage points, Bay Islands by 0.5 points, and Gladstone and Mount Isa by 0.4 points each.
Only a small number of markets sat within or above the REIQ’s healthy range. Gladstone was at 2.2%, while the Bay Islands recorded 3.5%. Isaac remained the state’s only clearly weak rental market, at 5.5%.
“We are seeing a clear shift in rental behaviour, with more tenants forming co-tenancies - joining forces to share costs and expand their options,” said Antonia Mercorella (pictured right), chief executive of the Real Estate Institute of Queensland. “Pooling resources can open the door to higher-quality properties or better-located homes that might otherwise be out of reach for individuals renting alone.
“This trend is particularly evident across southeast Queensland, where it’s not uncommon to see four or more tenants sharing premium properties, making higher rents more manageable on a per-person basis.
“With plenty of major projects on the Gold and Sunshine Coasts, we’re hearing about some cases of ‘drive-in, drive-out’ workers – where due to cost of fuel, tradies are renting in groups near their worksites during the week to avoid daily back and forth trips.”
Mercorella also noted an increase in multi-generational living arrangements, with extended families coming together under one roof – grandparents, parents, and their young, teenage or adult children, renting larger six- to seven-bedroom homes.
“Co-tenancy is a practical response to affordability pressures, but it’s not likely to be a long-term solution to Queensland’s rental housing shortfall,” she said.
“To ease pressure sustainably, we need to address the underlying issue of housing supply, and we need more pathways to help renters transition into home ownership where possible.”
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