Vacancy rate
The percentage of rental properties in an area that are empty and available to rent.
- Low vacancy means strong rental demand
- Around 2 to 3% is often seen as a balanced market
- Changes quickly with new supply
How it works
Data providers estimate the share of rental stock that is vacant at a point in time, usually by suburb or region.
What it tells you
Low vacancy usually means faster leasing and rising rents. Rising vacancy can signal new supply arriving or weakening demand.
Look at the trend and the supply pipeline, not one month's figure. A low vacancy rate today can change once new developments finish.
Common questions
Where does vacancy data come from?
Commercial data providers and real estate institutes, using listings and surveys.
Does low vacancy mean prices will rise?
Not necessarily, but it supports rents and investor demand.
Related terms
Sources
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.