Buyer's Glossary

Vacancy Rate

The share of a suburb's rental homes sitting empty and available right now.

What it is

Vacancy rate is the share of a suburb's rental homes sitting empty and available right now.

It is the cleanest read on rental demand. When almost nothing is available, rents rise and landlords hold the power.

1.2%

About 1 in 100 rentals sit empty. National, 2026, and unusually tight.

Why it matters

Low

tight

  • Almost nothing available to rent
  • Rents rise, incentives disappear
  • The result = a landlord's market

High

oversupplied

  • Plenty of empty rentals
  • Rents soften, incentives appear
  • The result = a renter's market, and vacancy risk

What counts as high, what counts as low

Shaded from a buyer's point of view: teal is favourable if you are buying, amber is balanced, red is harder. That is why this looks inverted against some other metrics, because a fast-moving market is good for a seller and hard for a buyer.

Under 1.5% TightA landlord's market.
1.5% to 2.5% BalancedSupply and demand roughly matched.
Over 2.5% OversuppliedA renter's market, and a vacancy risk if you are buying to rent out.

Around 1.2% nationally in 2026, which is unusually tight. The 2.5% oversupply threshold is the one Finvyne uses.

The trend to watch for

Watch the direction, not just the level. A suburb moving from 0.7% to 1.2% is loosening even though it still reads as tight.

Pair it with rental yield and rent growth. Units usually run a touch higher than houses.

What it looks like in the real world

Low

tight

  • Places lease in days, sometimes unseen
  • 10+ applications, rent offered above asking
  • Agents stop advertising

High

oversupplied

  • "Two weeks free rent" incentives
  • The same listings re-advertised with drops
  • Agents call past tenants