New research reveals the top 20 Aussie suburbs where it's hardest to find a rental property in 2022

New research has revealed the 20 Australian suburbs where it may be the hardest for prospective tenants to find an available rental property in 2022, with regions like Victoria’s Mornington Peninsula, Queensland’s Gold Coast and the Northern Rivers shire of NSW standing out as locations where available rentals are particularly scarce.

The rental market is tight all over Australia right now, with Domain reporting that as of December 2021, our national vacancy rate for rental properties was just 1.7%, down from 2.4% at the same time last year. With strong demand expected for January, this means conditions are set to be tough for those looking to rent out a property.

The COVID-19 pandemic has seen many Australians relocate north, leaving Sydney and Melbourne behind for places like northern NSW and south-east Queensland, and this trend appears to be reflected in rising house prices in these areas, as well as a lack of rental vacancies.

If you are looking to relocate or move house in the next few months, new research from online lender Well Home Loans has revealed the 20 suburbs in Australia where it is hardest to find a rental property in 2022. We’ve considered the data, and what it could mean for renters as well as prospective property investors.

How were the top 20 toughest rental markets in Australia determined?

Well Home Loans commissioned research in December, identifying 20 suburbs across Australia with the lowest rental vacancy rates. Each of the suburbs considered had only one, two or three vacant properties when the data was compiled, and to qualify as ‘vacant’, a property had to have been advertised for rent for 21 days or more.

To ensure the accuracy of the list, Well Home Loans told Canstar it only considered suburbs with more than 500 rental properties. Its data also took into account areas where the neighbouring suburbs had low rental vacancy rates, and excluded suburbs in which fewer than 5% of properties were rentals.

Suburbs were then ranked according to the highest change in rental prices for houses over the past 12 months.

What are the top 20 suburbs where it’s hardest to find a rental in 2022?

According to Well Home Loans, the 20 suburbs where it’s hardest to find a rental are as follows. The list includes suburbs in every Australian state and territory with the exception of the NT, and generally seems to indicate that coastal suburbs are among the most competitive rental markets.

Note that the number of vacant rental properties comprises both houses and units in each area, while the amount of weekly rent increase in the past year takes into account houses only:

1. Casuarina, Northern Rivers, NSW – 1 vacant property, $205/week rent increase
2. Henley Beach, Adelaide, SA –  1 vacant property, $175/week rent increase
3. Pelican Waters, Sunshine Coast, QLD – 2 vacant properties, $170/week rent increase
4. Maleny, Sunshine Coast, QLD – 1 vacant property, $150/week rent increase
5. Bilinga, Gold Coast, QLD –  1 vacant property, $145/week rent increase
6. Swansea, Greater Newcastle, NSW – 1 vacant property, $140/week rent increase
7. Rye, Mornington Peninsula, VIC – 2 vacant properties, $130/week rent increase
8. North Beach, Perth, WA – 1 vacant property, $130/week rent increase
9. Highland Park, Gold Coast, QLD – 1 vacant property, $125/week rent increase
10. Safety Beach, Mornington Peninsula, VIC – 3 vacant properties, $120/week rent increase
11. Reedy Creek, Gold Coast, QLD – 1 vacant property, $120/week rent increase
12. Currubmin Waters, Gold Coast, QLD – 1 vacant property, $120/week rent increase
13. Bonython, Canberra, ACT – 1 vacant property, $120/week rent increase
14. Mardi, Central Coast, NSW – 1 vacant property, $115/week rent increase
15. Bogangar, Northern Rivers, NSW – 1 vacant property, $110/week rent increase
16. Tweed Heads South, Northern Rivers, NSW – 3 vacant properties, $110/week rent increase
17. Deloraine, Central North, TAS – 1 vacant property, $110/week rent increase
18. Tweed Heads West, Northern Rivers, NSW – 3 vacant properties, $105/week rent increase
19. Pottsville, Northern Rivers, NSW – 1 vacant property, $100/week rent increase
20. McCrae, Mornington Peninsula, VIC – 1 vacant property, $100/week rent increase

What does this mean for renters vs investors?

Well Home Loans CEO Scott Spencer told Canstar that in 2022, the balance of power in the Aussie market appears to be tipped towards landlords and property investors over tenants.

“If you’re an investor in a suburb that contains only three vacant rental properties, tenants have to compete hard for your property, which gives you the chance to push up rents,” he said. “Conversely, if you’re a tenant, life is really tough, because it’s difficult to find accommodation and you know rents are climbing fast.”

“To make matters worse, all the suburbs in this report are in areas with very low vacancy rates, so even if tenants were prepared to move one or two suburbs along, they’d still find it hard to secure accommodation. That gives investors considerable market power.”

In some areas, rental prices may have increased to the point where they are more expensive on average than mortgage repayments. Spencer said that people in these areas might therefore find it more financially viable to buy rather than rent, but admitted that in the current landscape, this is easier said than done.

For example, he told Canstar that Tweed Heads South and Tweed Heads West in northern NSW are areas with high levels of economic disadvantage, among the highest levels in the state. “That makes it hard for tenants to afford rising rents and to save a deposit,” he said. 

Conversely, the suburb of Casuarina is in an area of relative economic advantage, according to recent Australian Bureau of Statistics (ABS) figures. People there might theoretically find it easier to cope with a big jump in local rents and potentially get a foot on the property ladder, Spencer said. 

What Australian suburbs are tipped to experience price growth in 2022?

Perhaps unsurprisingly, regional NSW was ranked as the number-one area in Canstar’s recent Rising Stars Report, which highlights eight capital cities and six regional areas around Australia, to forecast their future prospects for capital growth.

The recent growth of areas like regional NSW and QLD reflects the trend of ‘exodus to affordable lifestyle’, which has seen many people relocate from major cities following the turmoil of COVID-19, seeking a simpler and potentially cheaper way of life.

The report identifies a total of 110 ‘rising star’ suburbs around the country, with each one selected based on its performance in the areas of sales volume, quarterly price growth, vacancy rates, rental growth and infrastructure spending.

If you are currently weighing up the relative merits of renting a property versus buying, Canstar also has a guide that may be of assistance when making this decision.

Cover image source: Greg Brave/Shutterstock.com