Source: REIQ
Queensland’s rental market remains critically tight, with the statewide vacancy rate sitting at a measly 1.0%, according to the Real Estate Institute of Queensland’s (REIQ) December Quarter 2025 Residential Vacancy Rate Report.
The REIQ classifies a ‘healthy’ vacancy rate as one that sits between 2.6 – 3.5%, however this quarter vacancy rates were 1.0% or less in 33 of the 50 local government areas (LGAS) and sub-regions tracked by the REIQ across the state.
Compared to the previous quarter, seven areas tightened, 13 remained the same, and 30 relaxed slightly. While there has been a modest rise in the number of rental properties becoming vacant, there’s still far from enough to meet demand.
REIQ CEO Antonia Mercorella said it was an unsurprising end to yet another year defined by extremely tight rental market conditions and ‘slim pickings’ for renters.
“We all need a roof over our heads whether we rent it or own it,” Ms Mercorella said.
“However, Queensland’s rental population is higher than the national average at 36 per cent, highlighting the state’s heavy reliance on rental properties to house Queenslanders.
“These persistently low vacancy rates being experienced in many parts of the state show there is significant strain on our rental housing stock.
“It’s like a game of ‘musical chairs’ - when rental supply falls short, it’s the most vulnerable people in our community who are left standing. This is evident in our state’s social housing waitlist, which has reached almost 59,000 Queenslanders.”
“We also know there are renters who want to transition into home ownership but may need a leg up onto the ladder. It’s young Queenslanders in the 25-39-year-old age bracket who have seen the largest declines in home ownership rates.
“They’re demonstrating they can reliably pay the rent (sometimes at a rate comparable to mortgage repayments) but are finding it challenging to save for a home deposit at the same time – particularly given sales prices are also on the rise.
“The REIQ welcomes Government initiatives such as shared-equity schemes to help close the deposit gap and first home buyer stamp duty relief that address these major upfront financial obstacles standing in their way.
“As advocated for by the REIQ, we need ambitious goals to lift home ownership levels, such as the Crisafulli Government’s plan to boost Queensland’s home ownership rate - currently the lowest of any state at 64% - to the highest in the country within a decade.
“It’s time for a reset to help ease Queensland’s rental market pressures. By helping more first home buyers transition from renting to owning a home, it lightens the load on the rental market by alleviating some of the demand-side pressure.”
Ms Mercorella said to cater to Queensland’s portion of nationally agreed construction targets we need to be building around 49,000 new dwellings each year, but with 34,000 built over the 12 months to September last year, we’re falling behind.
“We support the ‘construction industry reset’ mindset and welcome productivity measures to get Queensland building faster, as outlined in the State Government’s response to the Queensland Productivity Commission report,” she said.
“Speeding up new housing supply is critical because the reality is there is a lot of catching up to do and there are still strong headwinds coming.
“With a huge pipeline of infrastructure projects and ongoing labour workforce shortages, we expect to see tradies and their families moving to Queensland - and many of them will be looking to rent.”
Cook (0.0%) continues to record effectively zero rental vacancies. It was closely followed by Charters Towers (0.1%), while Banana and Goondiwindi (both 0.3%) and Maranoa (0.4%) also ranked among the state’s most unavailable and inaccessible rental markets.
Pressure also remains on the rental market across southeast Queensland. Greater Brisbane (1.0%), Brisbane LGA (1.2%), Ipswich (0.9%), Logan (0.9%), Moreton Bay (0.9%), and Redland (1.0%) all remain deep in tight territory. Conditions across the Sunshine Coast (0.7%) and Gold Coast (1.1%) are similarly strained.
Vacancy rates remain tight in regional Queensland centres, including Toowoomba (0.7%), Cairns (1.0%), Townsville (1.0%), Rockhampton (0.8%), Mackay (1.1%), and Bundaberg (1.0%).
At the other end of the scale, only a handful of regions are offering renters more ‘healthy’ choice. Mount Isa (2.3%) and Gladstone (2.6%) are the only areas near or just within the REIQ’s ‘healthy’ range, while the state’s only ‘weak’ rental markets remain the Bay Islands (4.0%) and Isaac (6.1%), where there’s a clear mismatch between supply and demand.
Only seven markets tightened further this quarter, and the movements were modest. Noosa (1.6%) saw the largest contraction, down -0.3 percentage points, followed by Gold Coast (1.1%) and Central Highlands (0.7%), both falling by -0.2 percentage points. Slight tightening of a mere -0.1 percentage points was recorded in Sunshine Coast (0.7%), Gympie (1.1%), Livingstone (0.9%), and Southern Downs (0.8%).
Thirteen regions held steady and recorded no change this quarter, including Moreton Bay (0.9%), Redcliffe (0.7%), Redland (1.0%), Caloundra Coast (0.6%), Maroochy Coast (0.8%), Hinterland (0.8%), Maryborough (0.9%), Rockhampton (0.8%), Cassowary Coast (0.7%), Charters Towers (0.1%), Cook (0.0%), and Tablelands (0.6%).
Most of the state, however, recorded slight easing. Vacancy rates rose by +0.1 percentage points across areas such as Greater Brisbane (1.0%), Brisbane LGA (1.2%), Outer Brisbane (0.9%), Ipswich (0.9%), Logan (0.9%), Pine Rivers (0.7%), Bundaberg (1.0%), Banana (0.3%), Burdekin (0.6%), and Scenic Rim (1.0%).
Slightly larger lifts of +0.2 percentage points were recorded in Inner Brisbane (1.4%), Caboolture (1.1%), Sunshine Coast SD (1.2%), Fraser Coast (1.3%), Hervey Bay (1.2%), Mackay (1.1%), Toowoomba (0.7%), Townsville (1.0%), Goondiwindi (0.3%), and South Burnett (0.7%).
The largest rises this quarter were concentrated in resource and regional markets, including Mount Isa (+0.7pp to 2.3%), Isaac (+0.6pp to 6.1%), Gladstone (+0.4pp to 2.6%), Whitsunday (+0.4pp to 1.3%), and Lockyer Valley (+0.4pp to 1.5%). These areas are more sensitive to workforce and project cycles and may reflect changes in employment opportunities.
The REIQ classes rental markets into three categories; tight, healthy, or weak. These markets are classified according to vacancy rates ranges:
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