Queensland’s rental market continues to face significant pressure, with the latest data from the REIQ revealing a statewide vacancy rate of just 1.0% for the December Quarter 2025. This figure highlights how challenging it remains for renters across the state - and why meaningful changes are needed to support both renters and prospective homeowners.
To place this in context, the REIQ considers a healthy vacancy rate to sit between 2.6% and 3.5%. Yet, in 33 of the 50 Queensland markets measured, vacancy rates were 1.0% or lower. While some areas have seen slight easing, supply still falls well short of demand, keeping market conditions extremely tight.
A Year Defined by “Slim Pickings” for Renters
REIQ CEO Antonia Mercorella described the situation as unsurprising given persistently tough conditions throughout 2025. With 36% of Queenslanders renting - higher than the national average - the rental market plays a vital role in providing housing across the state.
But with such low vacancy rates, the housing pressure is mounting.
Ms Mercorella has likened the situation to a game of musical chairs as those most vulnerable are being left without a seat. This is evident in Queensland’s social housing waitlist, which has now reached almost 59,000 people.
The Home Ownership Challenge
A key part of easing rental market stress comes from helping renters transition into their first home.
Young Queenslanders aged 25-39 have seen the sharpest decline in home ownership rates. Many are faithfully paying rent (which is often comparable to mortgage repayments) but are struggling to save for a home deposit as property prices continue to rise.
Government initiatives such as shared‑equity schemes and first home buyer stamp duty relief are a welcome step toward closing that deposit gap. The REIQ has also advocated strongly for ambitious, long‑term goals to boost home ownership, supporting the government’s plan to increase Queensland’s ownership rate which is currently the lowest in Australia at 64%.
Helping more renters become homeowners helps release pressure in the rental market by easing demand.
More Homes Are Needed - And Fast
To keep pace with Queensland’s share of national housing targets, the state needs to build around 49,000 new homes each year. Yet only 34,000 homes were constructed in the 12 months to September 2025 leaving a significant shortfall.
The REIQ has welcomed the State Government’s renewed focus on productivity and construction efficiency. With more infrastructure projects coming and skilled workers moving to Queensland, demand for rental properties is likely to remain strong.
Where Rental Pressure Is Most Intense
Some regions in Queensland remain critically tight, including:
- Cook (0.0%)
- Charters Towers (0.1%)
- Banana, Goondiwindi (0.3%)
- Maranoa (0.4%)
Closer to home, the southeast corner continues to feel the pinch:
- Greater Brisbane: 1.0%
- Ipswich, Logan, Moreton Bay: 0.9%
- Redland: 1.0%
- Sunshine Coast: 0.7%
- Gold Coast: 1.1%
A Critical Moment for Queensland Housing
The message from the REIQ is clear: Queensland needs a reset.
Supporting first home buyers, unlocking housing supply, and accelerating construction pipelines are all essential steps in turning the tide. While slight improvements have been seen in some regions, vacancy rates remain far below healthy levels - and demand continues to grow.
At LJ Hooker Property Complete, we’re committed to helping our community navigate these challenges - whether you're looking for a rental, hoping to buy your first home, or seeking guidance in an ever‑changing market.
