Why is the rental market so tight?
Right now, landlords on the Gold Coast do not have to worry about finding tenants. Vacancy rates on the Gold Coast are at an ALL. TIME. LOW.
There are likely several factors contributing to this extremely tight market.
Fear. Covid has made people nervous, and what is the safe thing to do when we feel nervous? Stay put in our comfort zones. Don’t move out of your rental. Don’t move interstate. Don’t go travelling around Australia. Keep control on what you have control of….Your home.
Air BnB is another factor. With no one holidaying overseas, domestic travel has exploded. Landlords have realised they can earn a lot more dollars using air bnb than with a permanent tenancy. Especially those with properties close to the beach. This has caused a downturn in available, permanent rentals.
Then we have the tremendously low interest rates, which means money is cheap to borrow and suddenly first time buyers are accounting for much more than the usual 10% of buyers, placing high demand on an already under supplied market. Properties for sale sitting at 50% less than the same time in 2020. And with less properties purchased as investments it has further reduced available rentals.
Add into the mix the migration of tenants and buyers from interstate with larger budgets that their northern counterparts and we have the perfect storm.
But, will it continue? Probably not. And what happens when it starts to balance out again. There will be a huge sigh of relief from renters and time for a bit of normality to kick back in. What that means for landlords is there will come a time when finding a tenant won’t be super easy anymore. That's where we come in - we know the best ways to ensure you are never without an amazing tenant! (Blog coming soon!)
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