Queensland’s rental market is officially in crunch mode, with the state’s vacancy rate dropping to a razor-thin 0.9% in the March 2025 quarter, according to the latest Residential Vacancy Rate Report from the Real Estate Institute of Queensland (REIQ). That’s right — finding a rental is getting tougher, and it’s putting serious pressure on tenants and investors alike.

This dip comes after three quarters of stability, highlighting just how deep the strain on our rental supply has become — and it’s not just in the cities. Almost half of Queensland’s regions saw vacancy rates tighten, while only 14 areas experienced any relief.

What’s Happening Across the State?

• Brisbane’s vacancy rate fell again, sitting at a low 1.0%, while outer suburbs like Pine Rivers, Redcliffe, and Moreton Bay dropped to between 0.6% and 0.7%.

• Regional Queensland is also feeling the pinch. Cook and Goondiwindi are officially at 0.0% — meaning there are no rentals currently available.

• A further 16 regions, including Maryborough, Toowoomba, Caloundra Coast, and Southern Downs, reported vacancy rates of 0.5% or less.

And while Noosa showed the most easing, with vacancies rising to 2.0%, the reality is that price points there remain out of reach for the average renter.

Why Is This Happening?

REIQ CEO Antonia Mercorella says this is a classic case of supply not keeping up with demand.

“Queensland’s stubbornly tight rental conditions are symptomatic of years of underinvestment in housing supply, compounded by rapid population growth,” she explains.

There’s a disconnect between how many homes Queensland needs, and how many are being built. According to the ABS, we need around 4,100 new homes approved each month to meet National Housing Accord targets. But in March 2025, only 3,116 were approved — and that monthly trend is dropping.

The Rental Market Paradox

Interestingly, property managers are noticing slower letting activity and longer days on market — even in a tight market. Why? Because many renters are simply maxed out. They’re forming share houses, compromising on lifestyle, or sitting on the sidelines due to rising costs.

On the flip side, landlords are more cautious than ever, facing rising holding costs and more complex legislation, which is prompting stricter tenant selection and longer vacancies.

So, What’s the Solution?

There’s no quick fix, but the message is clear: we need more homes built, and fast. The REIQ is calling on all levels of government to:

• Cut approval red tape

• Invest in enabling infrastructure

• Release more land

• Incentivise private investment in rental housing

Without swift action, Queensland’s renters will continue to face fierce competition for fewer homes — and that’s not good for anyone.

What Does This Mean for Bundaberg?

Locally, we’re not immune. While Bundaberg hasn’t hit the 0.0% mark, vacancy rates have been consistently low here, and we’re seeing growing pressure on our own rental market. Properties are leasing quickly, and the pool of available rentals is shrinking.

For investors, this could be the perfect time to enter the market. High demand, low supply, and long-term growth potential make rental properties a smart move right now — especially in a region like Bundaberg, where affordability still exists compared to metro centres.

And for renters, now is the time to get organised: have your applications ready, stay flexible, and work with agents who are on the ground and in the know.

Need help navigating the rental market? Whether you're looking to lease out a property or find your next home, our team at First National Real Estate Bundaberg is here to guide you through it all — with expert advice and a local touch.

Get in touch today, and let’s talk strategy — because in this market, having the right team on your side makes all the difference.