A new analysis released on Monday by PropTrack found that the number of new rental properties decreased by 5.7% in the year ending in September, attributed to a slowdown in new home construction, real estate investors exiting the market, and the fastest population growth in over a decade. Additionally, the total number of new listings hit a historic low, dropping by 7.1% year-on-year.

Rental competition is also intense, with the average number of inquiries per property increasing from 24.5 to 24.8 over the past year, while the average days on market for property advertisements stood at just 20 days. Data shows that the national rental vacancy rate dropped to a new low of 1.06% in September, down from 1.3% a year earlier.

Due to the scarcity of supply and strong demand, the cost of the rental market continues to rise and is expected to further increase. Cameron Kusher, Director of Economic Research at PropTrack, stated, "The rental market continues to face significant challenges, with tenants facing fierce competition for limited available rental properties."

Consequently, tenants are forced to endure high rental prices. According to PropTrack data, the median weekly rent for advertised properties across the country was $550 per week as of the end of September, representing a significant increase of 14.6% from the same period last year. According to the latest quarterly inflation data from the Australian Bureau of Statistics (ABS), overall rents in Australia surged by 7.8% in the year ending in September.

The issue of housing affordability is becoming increasingly prominent, compounded by the significant growth in the Australian population. ABS data indicates that the Australian population increased by 563,200 people in the year ending in March, including 454,400 new immigrants. During the same period, the number of newly approved dwellings decreased by 17.3%.

This highlights the need for the Australian government to take measures to address the shortage of rental properties and accelerate the construction of new homes to meet the growing demands of the population. The government could consider providing more incentives to attract developers to invest in the construction of new properties and increase the supply. Additionally, the government could also consider adjusting rental subsidy policies to assist low-income families struggling with high rental prices.