REIQ’s June Quarter 2025 Residential Vacancy Rate Report analysed the rental market through 50 of Queensland’s regions and subregions.

Across these regions, the vacancy rates tightened in four and remained unchanged in 15. Meanwhile, 31 regions saw rates relax in comparisons to the March quarter report.

This reveals that Queensland’s rental market is rigid but stable, as the vacancy rate rose from 0.9 per cent to 1.0 per cent.

REIQ defines a healthy vacancy rate as between 2.6-3.5 per cent to support housing flexibility and population expansion. No Queensland region fell within this range, and 34 of the 50 regions exhibited rates below 1.0 per cent.

What this means for Queensland’s rental market

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REIQ CEO Antonia Mercorella said this report showed how undersupplied Queensland’s rental market was, and has the demand to sustain bigger investments in housing construction.

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“This continued rental squeeze, while not worsening, is continuing to make a strong case for more investors and more rental accommodation to meet demand,” Mercorella said.

“There are some positive signs regarding investor interest in Queensland property, which is likely focused in areas where yields remain attractive, and sentiment is stabilising.”

In the latest ABS lending indicator data, Queensland reported the highest national growth in new loans to property investors at 24 per cent.

Vacancy rates directly affect unemployment rates, which rose from 3.7 per cent to 4.1 per cent in Queensland in June.

“Our regions rely on being able to attract and retain workers and a big part of this is being able to secure suitable accommodation nearby,” Mercorella said.

“We must ensure housing diversity reflects modern living arrangements – from smaller dwellings, smaller lot sizes and build-to-rent, to accessible and adaptable housing for an ageing population and even options for multi-generational living,” Mercorella said.

REIQ classifies a ‘tight’ rental market as having a less than 2.5 per cent vacancy rate, where 48 out of 50 Queensland regions sit. The regions with the lowest rates included Cook, Goondiwindi, Charters Towers and Maranoa, all falling below 0.3 per cent.

June quarter report findings

Only two regions ranked as having a ‘weak’ rental market, where rates rise above 3.6 per cent. Isaac reported 4.2 per cent while the Bay Islands scored a 3.7 per cent vacancy rate. These regions also reported the largest increases in vacancy rates since the last quarter with raises of over 1.0 per cent.

The region with the “healthiest” rate was Noosa, at 2.4 per cent, though this is more indicative of rental properties staying listed for longer.

“We know that the data doesn’t tell the whole story, as some renters are consolidating households, delaying moves, or even leaving town due to affordability challenges – these behavioural shifts can have a subtle but real effect on vacancy levels,” she said.

“Without a meaningful lift in new housing supply, we expect vacancy rates will hover around these tight levels for some time to come.”