There is a clear gap in the market for property investors
There is a clear gap in the market for property investors, given a shortage of rental accommodation, based on new research from the Property Investors Council of Australia (PICA).
The research found that over the last five years, 35,000 more property investors would have been needed to keep up with population growth and the resultant rental demand.
From March 2019 to March 2024, Australia’s population grew by approximately 1.8 million people, necessitating around 212,000 new rental properties and an additional 145,000 investors to accommodate these new households.
However, data from the Australian Taxation Office showed that only around 110,000 investors joined the market over that period.
This shortage has led to a very tight rental market, with upward pressure on rental rates and record-low vacancy rates. As a result, PICA chair Ben Kingsley said it is in everyone’s interests to encourage more investors to enter that market.
“It’s not only in the broader economy’s best interest, but also all levels of governments and, most definitely, in the best interest of renters,” he said.
About the author - Alex Veljancevski is a Sydney mortgage broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking a better deal on their home loan.
