Catenaa, Tuesday, February 03, 2026– Australia’s rental shortage is worsening as instability in lease terms drives churn among renters and landlords, according to new research and property managers.
A snap poll conducted by EqiHome Way surveyed more than 600 renters and investors across Victoria and Queensland in late 2025, revealing that uncertainty, rather than affordability, is the primary pressure shaping behaviour in the rental market.
Short-term leases and delayed renewal decisions are forcing renters to move repeatedly, increasing competition for a limited supply of homes.
Many tenants reported that even a 12-month lease provides only nine months of security, complicating job mobility and major life decisions.
Property managers warn that each turnover tightens supply further, and rising rent burdens—40 to 50 percent of household income—add to tenant vulnerability.
Landlords are also responding to instability by hesitating to commit to long-term leases, selling properties, or delaying renewal decisions. Many are “mum-and-dad” investors facing rising costs and shifting regulations, making legally binding leases risky.
Turnover costs, vacancy periods, and re-letting fees are cited as additional deterrents to stability.
Industry leaders say certainty is critical to addressing the shortage. EqiHome Way founder Andrew Walton said both renters and landlords are seeking security, but the system is not delivering it.
Property managers spend increasing time mediating disputes and explaining legislative changes rather than managing properties.
Analysts warn that without broader economic support, including wage growth, the rental market will continue to deteriorate, compounding the shortage governments aim to resolve.
