Many major cities across Australia are facing very low vacancy rates and thus a high level of rental shortages. According to a recent study by Australian Property Investor (API) magazine, the lack of available leases has sent would-be tenants into a bit of turmoil, and given investors the upper hand.
Last year in Perth, the increasing success of the state's mining industry helped drive the number of available rentals to new lows. API's analysis of housing data shows that 27 of Perth's suburbs have exceptionally high demand for rentals.
The competition for rentals in Perth and many of its suburbs may encourage people to explore opportunities in other beautiful regions of Western Australia. Owners of Bunbury rentals, for example, may benefit from the low vacancy rate.
There are a number of reasons vacancy rates are being driven below the three per cent that's considered a healthy balance. For instance, many people delayed home-ownership after the financial crisis, owing not only to a lack of faith in the market but also to stricter regulations at the banks.
As the housing market and construction sector in Western Australia continues to recover, residents will gain more confidence in the economy's recovery. The number of people looking for houses to rent in Bunbury will likely increase, and owners of real estate in Bunbury south and east may also see more interest from Australians ready to invest.