The rental market is tight, fuelling competition between renters and elevating rent prices. In some suburbs, properties are being leased almost twice as fast as they were 12 months ago.
According to PropTrack vacancy rate figures, just 1.42% of rental properties were available to lease in June. While vacancies have improved recently following four consecutive increases, conditions remain difficult for renters.
New home construction has lagged behind targets set to match the rate of population growth across the country. This is contributing to the major undersupply of rental properties, driving up competition for those looking to rent.
At a national level, houses spend 21 days on the rental market, while units take 19 days to lease. This time frame has remained relatively unchanged compared to last July, when the market was also tight. However, in a number of suburbs, properties are being rented out much faster.
To determine the areas where demand has risen and competition has become fierce, we looked into the suburbs with the greatest decrease in median rental days on market over the past year.
Days on market reflect the time taken for a property to be leased after being listed.
| Suburb | State | City/Region | Property type | Median rental DOM | % change in median DOM |
| Beecroft | NSW | Sydney | House | 19 | -47% |
| Hazelbrook | NSW | Sydney | House | 13 | -46% |
| Noble Park North | VIC | Melbourne | House | 16 | -45% |
| Manly Vale | NSW | Sydney | House | 15 | -44% |
| Clovelly | NSW | Sydney | House | 21 | -43% |
| Brighton-Le-Sands | NSW | Sydney | House | 14 | -42% |
| West Perth | WA | Perth | House | 14 | -42% |
| Swanbourne | WA | Perth | House | 19 | -42% |
| Balgowlah Heights | NSW | Sydney | House | 22 | -41% |
| Niddrie | VIC | Melbourne | House | 22 | -41% |
For houses, Beecroft and Hazelbrook in Sydney experienced the largest falls for days on market. They were leased 47% and 46% faster, respectively, compared to July 2023.
Noble Park North in Melbourne and Manly Vale and Brighton-Le-Sands in Sydney rose in popularity among renters with houses leasing in just over two weeks. This was a notable reduction from the time taken in the same period last year.
Houses in Clovelly and West Perth were also renting faster than they were 12 months prior, with decreases of 43% and 42% for days on market, respectively.
| Suburb | State | City/Region | Property type | Median rental DOM | % change in median DOM |
| Mont Albert North | VIC | Melbourne | Unit | 15 | -53% |
| Melton | VIC | Melbourne | Unit | 19 | -48% |
| Bateau Bay | NSW | Sydney | Unit | 10 | -47% |
| East Lismore | NSW | Regional NSW | Unit | 16 | -45% |
| Bar Beach | NSW | Regional NSW | Unit | 13 | -43% |
| Villawood | NSW | Sydney | Unit | 16 | -43% |
| Canley Vale | NSW | Sydney | Unit | 17 | -41% |
| Kahibah | NSW | Regional NSW | Unit | 9 | -40% |
| Balgowlah | NSW | Sydney | Unit | 10 | -38% |
| Deer Park | VIC | Melbourne | Unit | 15 | -38% |
Mont Albert North and Melton in Melbourne took the top spot for unit rentals. Compared to July 2023, units in Mont Albert were leasing twice as fast, while those in Melton were just short of doubling their rental speed.
Demand for units in the Sydney suburbs of Bateau Bay and Villawood have also grown. Properties have been leasing in nearly half the time compared to last year, with times falling to 10 and 16 days respectively.
East Lismore and Bar Beach in Regional NSW experienced a large decrease in their days on market as well, reflecting increased competition between renters in the suburbs.
Although the market has improved slightly with a recent uptick in vacancy rates over the past four months, we expect renters to continue facing difficulties - both in finding a property and managing rising rents.
Shortfalls in rental availability, combined with strong demand largely driven by population growth, will sustain these tough conditions, but there may be some hope ahead with weekly rents showing early signs of stabilisation.
