<\/span><\/h2>\n\n\n\nWhile asking rents are unlikely to drop significantly, Powell expects rent increases to slow in 2024, leading to improved conditions for potential tenants. "It's impossible for rents to continue to rise at the current rate, especially in 2022 and early 2023, which suggests it's not sustainable in the long term," he said.<\/p>\n\n\n\n
"However, these conditions remain challenging for tenants and we cannot lose sight of that. Vacancy rates remain low, with the exception of the Australian Capital Territory... but I would expect the pace of rental growth to be much lower than it is in 2022."<\/p>\n\n\n\n
Powell said the introduction of homebuyer incentives by several state governments, such as the Help to Buy scheme, which shares benefits with new homeowners, and the Queensland government's doubling of the first-time homebuyer grant, would provide more hope for tenants hoping to buy a home. Powell estimated that an additional 30,000 to 60,000 rental properties would be needed to stabilize the market.<\/p>\n\n\n\n
"We've also noticed increased talk about interest rate cuts this year, which would have a significant impact because if we saw a rate cut, it would mean increased borrowing capacity, potentially allowing some tenants to afford mortgages and buy homes sooner," she said.<\/p>\n\n\n\n
"There are a lot of changes in the environment going into 2024 that suggest we're moving away from the period of extreme rent increases that we've seen over the past few years... I do think tenants will be finding better deals in 2024."<\/p>","protected":false},"excerpt":{"rendered":"
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