The rental shortage that caused such an outcry in the aftermath of Covid is back with the national vacancy rate at just 1.47%.
Scarcity of rental properties is forcing many Australians to look for new, longer term leases for fear they are going to have their current ones terminated by landlords seeking higher rents.
A new survey called Renter’s Voice 2025, conducted for rent.com.au, finds one-in-five renters are searching for a new rental despite the shortage.
The survey illustrates the pressure building on young renters who are also saving for a deposit to buy their first home.
It tells us that relying on rentals is increasingly precarious, and the desire for stability and certainty can only be achieved by owning your own home.
Perhaps the survey’s most potent evidence is the trend towards long-term renting: 38.1% of respondents have been leasing for more than five years. For many, renting is no longer a temporary stage but a necessary long-term arrangement.
However, there is good news that should turn this trend around.
Last month, the Federal Government released a revamped Home Guarantee Scheme (HGS) that gives first-time buyers their best chance to enter the market.
The Government will underwrite 15% of a loan, which means first homebuyers now need only a 5% deposit to avoid the punitive Lenders Mortgage Insurance (LMI). The goal is to ensure many more renters will be able to enter the real estate market.
When you purchase your first home, you’re not just buying a place to live, you’re acquiring an asset that should be a long-term investment.
The Renter’s Voice survey found:
- 61.9% of respondents favour a house.
- 28.3% would like to buy an apartment or unit.
While the “Aussie dream” of a detached house remains strong, the reality of market entry often requires strategic compromise. In 2025, apartments and units are increasingly proving to be the smartest entry point.
We are seeing immense demand and limited supply in the unit sector, particularly in inner-city and high-amenity areas.
The high cost of houses has driven both renters and first-time buyers towards high-quality units, leading to strong unit rental growth and capital gains in that segment.
Many analysts predict that in an affordability-constrained environment, unit prices will see faster percentage growth than houses over the next two years.
For aspiring first-time buyers, this means two things:
Entry Point – Units offer a practical, lower-cost way to get your foot on the property ladder, allowing you to benefit from the current government schemes.
Investment Resilience – A quality unit in a high-demand, low-vacancy market is an excellent first asset.
The cycle of long-term renting comes with a huge opportunity cost in a growing property market. However the Government’s HGS lowers the barrier to entry, subsidising your leap into ownership. The door is open for you to move from paying someone else’s mortgage to securing your own financial future.