How do you know if it is a tenant or landlord market?

There are a number of factors that market researchers rely on to determine whether it is a tenant or landlord market. However, the most commonly referred to statistical data is the ‘vacancy rate’.


In a recent article published by domain.com.au an expert in research, Louis Christopher, Managing Director from SQM Research, commented that “In almost all locations around the country, renters are facing an uphill battle in finding affordable accommodation”.

So...how do you know if it is a tenant or landlord market?

Overall, a market that favours landlords is said to exist when vacancy rates are below 3 per cent. Above this level, it starts to turn into a tenants’ market.

SQM Research recorded the national vacancy rate at 1.9 per cent, which represents a very difficult market for renters.

The data collected to determine the national vacancies rates was based on online rental listings that had been advertised for three weeks or more, compared with the total number of established rental properties.

The toughest market is Canberra at just 0.7 per cent, while the one that best favours tenants is Melbourne, which has a vacancy rate of 2.8 per cent. Sydney is recording 1.4 per cent, with the outer ring showing rates below 1 per cent. In some locations in Sydney’s west, vacancies are almost non-existent.


It was also noted that many affluent suburbs or higher-priced rental properties were experiencing higher vacancy rates, such as 4.8 per cent, leading to landlords having to offer discounts to attract quality tenants. This further demonstrates the demand for affordable housing.

A similar trend was witnessed in the second half of 2008 when vacancy rates in some more expensive suburbs reached 10 per cent.

Our current vacancy rate is 1.5%, however, if you are interested in the vacancy rate for a postcode or suburb you can visit www.sqmresearch.com.au to assist with your research.