Brisbane’s rental vacancy rates are at record lows in 2025. Discover what this means for renters, landlords, and the broader property market.
In 2025, Brisbane’s rental market is facing one of its tightest squeezes in history. Vacancy rates have plunged below 1% in many suburbs — a staggering figure that signals fierce competition for homes, soaring rents, and mounting pressure on both renters and the city’s housing infrastructure.
For landlords and property owners, this creates a unique (and potentially lucrative) moment. But for renters, it’s becoming increasingly difficult to secure a place to live — especially near the inner city or popular lifestyle hubs.
So, what’s behind this crisis-level vacancy rate? And what should property investors be doing in response? In this article, we’ll break down the causes, the suburb-level trends, and what the future may hold for Brisbane’s fast-moving rental market.
Brisbane’s rental vacancy rate has officially dipped into crisis territory. As of mid-2025, the citywide average is hovering around 0.8%, with some inner-city suburbs and lifestyle hotspots experiencing rates as low as 0.4%.
To put this into perspective:
A healthy vacancy rate in Australia typically sits between 2% and 3% — a range that indicates balanced conditions between supply and demand. When the rate falls below 1%, it’s a strong signal that demand is far outstripping available rental stock, which drives up prices and reduces options for tenants.
While nearly all areas of Greater Brisbane are feeling the pinch, some are significantly tighter than others:
Outer suburbs like Logan and Ipswich, traditionally seen as more affordable, are now catching overflow demand from the inner city — and even these areas are seeing rates drop below 1.2%.
Brisbane now has the lowest vacancy rate of any Australian capital city. Sydney and Melbourne, while also tight, are still sitting above 1%. Brisbane’s sub-1% vacancy rate signals a uniquely constrained market that’s unlikely to ease without a substantial increase in housing supply.
Brisbane’s current rental crisis isn’t the result of just one factor — it’s the product of several compounding issues that have been building for years. Understanding these underlying causes is key for both renters navigating the chaos and landlords looking to make informed investment decisions.
Brisbane’s population has surged in recent years, with thousands relocating from Sydney, Melbourne, and regional areas. Queensland has consistently led the country in net interstate migration since the pandemic, driven by lifestyle appeal, relative affordability, and job growth.
More people means more demand for housing — and the supply simply hasn’t kept up.
Despite rising demand, new housing approvals have slowed dramatically. Labour shortages, rising construction costs, and planning bottlenecks have delayed or cancelled many residential developments.
High-rise apartment projects in inner Brisbane that once added hundreds of units annually are now trickling in — if they’re completed at all. This lack of new stock is one of the most direct contributors to the vacancy rate squeeze.
Brisbane has seen a surge in properties shifting from long-term rental to short-stay accommodation. Suburbs like Newstead, Kangaroo Point, and the CBD have particularly high Airbnb activity, driven by both tourism recovery and investor interest in higher short-term yields.
This shift reduces long-term rental supply, especially in high-demand inner-city areas, further tightening the market.
Local and state governments have struggled to keep up with demand. Planning processes can take months or years, and new zoning reforms haven’t moved fast enough to unlock additional density in areas where it’s needed most.
Meanwhile, policies aimed at protecting tenants have made some investors cautious, leading a portion of the market to exit long-term rentals altogether.
For renters, Brisbane’s record-low vacancy rates have made an already competitive market feel almost impossible. Properties are being snapped up within days — sometimes hours — of being listed, and the pressure is driving rents higher than ever before.
In 2025, median weekly rents in Brisbane have jumped by over 10% year-on-year, with inner-city suburbs seeing even sharper rises. It’s not uncommon for a one-bedroom apartment in places like South Brisbane or Teneriffe to go for $650+ per week, while three-bedroom homes in middle-ring suburbs like Coorparoo or Ashgrove are now fetching well over $800.
For many renters, this means:
Low supply has also led to rental bidding wars, where applicants offer above the listed price just to secure a property. This unofficial practice — though discouraged — is becoming more common in high-demand suburbs.
Real estate agents report dozens of applications for a single listing, many from highly qualified tenants who still miss out. For renters, the process has become emotionally draining and financially stressful.
While Brisbane has long been seen as a more affordable alternative to Sydney or Melbourne, that gap is quickly narrowing. Some renters are now spending more than 40% of their income on housing, well above the benchmark for rental stress.
And with limited government intervention or new supply in sight, there’s little relief expected in the short term.
While the current rental climate is creating real challenges for tenants, it's also ushering in a rare window of opportunity for property owners and investors — particularly those holding well-located Brisbane real estate.
With vacancy rates below 1% and rental prices surging, landlords are seeing some of the strongest gross yields in the country. Units in suburbs like West End and Fortitude Valley are delivering yields close to 5%, while freestanding homes in middle-ring suburbs are also commanding premium rents. Short term rentals have yields exceeding 10% openeing the debate on whether long term or short term rentals are better.
For investors, this means:
Low supply means rental listings are being leased quickly, often after the first inspection. Landlords can be more selective, choosing the best applicants with strong income, references, and long-term potential.
This also reduces downtime between tenancies — a major win for owners looking to maximise income and reduce holding costs.
In a tight market, tenants are often more willing to stretch for upgraded properties. Investors willing to make modest improvements — fresh paint, modern furnishings, updated appliances — can often justify significant rent increases or even reposition their property for the short-term rental market.
With vacancy rates tight across Brisbane, certain suburbs are standing out as hotspots for both renters and savvy investors. These areas offer a compelling mix of lifestyle, connectivity, and strong rental performance — and they’re where the rental squeeze is being felt most.
These former industrial precincts have become inner-city lifestyle hubs, popular with young professionals and downsizers alike. With a high concentration of modern apartments, river access, dining precincts, and proximity to the CBD, Newstead and Teneriffe consistently attract premium tenants — but supply hasn’t kept pace.
West End remains one of Brisbane’s most in-demand suburbs due to its vibrant food scene, walkability, and cultural appeal. South Brisbane offers easy CBD access and is a favourite for professionals and medical staff working near the Mater and PA Hospitals.
With ongoing infrastructure investment and the Cross River Rail project on the horizon, Woolloongabba is transforming rapidly. Demand is spiking from both tenants and investors ahead of the 2032 Olympics.
Family-friendly, well-connected, and slightly more affordable than inner-city hotspots, these middle-ring suburbs are experiencing spillover demand. Homes are renting quickly, and investor interest is growing.
With long-term rentals in short supply, Brisbane landlords are in a strong position. But for those in premium locations, short-term letting through platforms like Airbnb is proving even more profitable — and often more flexible.
While long-term vacancy rates sit below 1%, the short-term market is also running hot — particularly in the inner city and lifestyle suburbs. Instead of “vacancy rates,” we look at occupancy: how many nights per month your property is booked.
In 2025, high-performing Airbnb markets in Brisbane are consistently seeing:
These are exceptionally strong numbers — and when paired with high nightly rates (often $250–400+ depending on styling and timing), they can generate significantly more income than a standard 12-month lease.
Short-term rentals offer:
Unlike traditional leasing, Airbnb requires:
Most successful short-stay landlords either manage it full-time or use a dedicated short-term property management service to handle everything from bookings to cleaning.
Brisbane’s rental market has reached a tipping point in 2025. With long-term vacancy rates below 1% and short-term occupancy soaring past 85% in key suburbs, the city is firmly in a landlord’s market — but not without challenges.
For renters, it means tougher competition, higher prices, and fewer choices. For property owners, it’s a rare window of opportunity to increase returns, reposition assets, or even explore short-term letting in areas where demand is surging.
But success in this market isn’t just about owning a property — it’s about knowing how to adapt to changing conditions. Whether that means raising rents, improving the presentation of your property, or shifting to Airbnb for more flexibility and income, the landlords seeing the strongest returns in 2025 are the ones staying proactive.
Brisbane’s shockingly low vacancy rates won’t last forever — but for now, they’re reshaping how the city rents, lives, and invests.
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