Cost of living creates a State of co-tenancy, says REIQ

Living alone is fast becoming a luxury few can afford, with more Queensland tenants banding together in co-tenancy arrangements as rental pressures persist across the state.

The statewide vacancy rate dipped slightly to 0.9 per cent in the March Quarter 2026, down from 1.0 per cent in the previous three quarters, according to the Real Estate Institute of Queensland’s (REIQ) latest Residential Vacancy Rate Report.

The REIQ classifies a ‘healthy’ vacancy rate as one that sits between 2.6 – 3.5%, however yet again vacancy rates were 1.0% or less in 33 of the 50 local government areas (LGAS) and sub-regions tracked by the REIQ across the state.

Compared to the last quarter of 2025, in the first quarter of 2026 almost half of all regions (24) tightened further, 13 remained the same, and 13 relaxed.

Rental pressures continue to take a toll on regional and rural areas including agricultural areas such as Goondiwindi (0.1%), Charters Towers (0.1%), and Maranoa (0.2%). Cook’s record zero vacancy rate was not revived for yet another quarter, remaining virtually inaccessible.

Across southeast Queensland, markets remain firmly in tight territory, including Greater Brisbane (0.8%), Brisbane LGA (1.0%), Scenic Rim (1.0%), Toowoomba (0.7%), Gold Coast (1.1%), and the Sunshine Coast (0.7%).

While conditions remain tight overall, some coastal and regional markets recorded modest increases in vacancy rates this quarter. The Maroochy Coast and Hinterland (both +0.5 percentage points), Hervey Bay (+0.4pp), and Noosa (+0.3pp) saw the most notable easing, suggesting a slight, potentially seasonal increase in rental availability.

At the other end of the spectrum, resource-driven markets and the Bay Islands recorded some of the largest tightening movements, including Isaac (-0.6pp), Bay Islands (-0.5pp), and Gladstone and Mount Isa (both -0.4pp), reflecting the sensitivity of these regions to workforce and economic shifts.

Despite these movements, only a small number of regions sit within or above the REIQ’s ‘healthy’ range, with Gladstone (2.2%) teetering on balance due an influx of investors, and the Bay Islands (3.5%) and Isaac (5.5%) remaining the state’s only ‘weak’ rental markets.

REIQ CEO Antonia Mercorella said ongoing cost-of-living pressures and persistently low vacancy rates were reshaping how Queenslanders approach renting.

“We are seeing a clear shift in rental behaviour, with more tenants forming co-tenancies - joining forces to share costs and expand their options,” Ms Mercorella said.

“Pooling resources can open the door to higher-quality properties or better-located homes that might otherwise be out of reach for individuals renting alone.

“This trend is particularly evident across southeast Queensland, where it’s not uncommon to see four or more tenants sharing premium properties, making higher rents more manageable on a per-person basis.

“With plenty of major projects on the Gold and Sunshine Coasts, we’re hearing about some cases of ‘drive-in, drive-out’ workers – where due to cost of fuel, tradies are renting in groups near their worksites during the week to avoid daily back and forth trips.

“We’re also noticing multi-generational living arrangements emerging, with extended families coming together under one roof – grandparents, parents, and their young, teenage or adult children, renting larger 6–7-bedroom homes.

“Co-tenancy is a practical response to affordability pressures, but it’s not likely to be a long-term solution to Queensland’s rental housing shortfall.

“To ease pressure sustainably, we need to address the underlying issue of housing supply, and we need more pathways to help renters transition into home ownership where possible.”

Ms Mercorella said it was important to remember vacancy rates did not paint the full picture, with real estate professionals reporting time on market is stretching out for some rental listings along with a growing mismatch between lessor and tenant expectations.

“While lower-priced properties continue to attract strong competition, higher-priced listings are taking longer to lease – particularly as discretionary spending is drying up,” she said.

“Feedback from our members indicates that some owners are setting their rent expectations based on headlines rather than the quality and attributes of their property, leading to longer vacancy periods and, in some cases, attracting fewer suitable applicants.

“Yes, the overarching data shows vacancy rates are tight, but translating that to a blanket expectation that your property will be rented for 52 weeks of the year without a vacancy and without even a short gap between a vacate and an entry is not necessarily realistic.”

She said traditional rental patterns have also been disrupted, with fewer predictable leasing cycles.

“What we once considered ‘rental seasons’ have largely disappeared, with more frequent break leases affecting the normal flow of tenancies. This has increased workloads for property managers, added costs for owners, and reduced length of tenure of tenants.

“Industry feedback also points to rising numbers of disputes, with many property managers reporting unprecedented levels of disputes and activity through QCAT.

“There is a strong call from the sector for a more balanced legislative framework that supports both tenants and property owners.”

Fast facts: March Quarter 2026

• Queensland Vacancy Rate: 0.9%
• Tightest Vacancy Rates: 0.0% in Cook, and 0.1% in Charters Towers and Goondiwindi.
• Highest Vacancy Rates: 5.5% in Isaac, 3.5% in Bay Islands (including North Stradbroke, Russell, Macleay, Karragarra, Lamb, and Coochiemudlo Islands), and 2.2% in Gladstone.
• Biggest falls: -0.6 percentage points (pp) in Isaac, -0.5 pp in Bay Island, and -0.4 pp in Gladstone, Mount Isa, and Southern Downs.
• Biggest rises: +0.5 pp in Maroochy Coast and Hinterland, +0.4 pp in Hervey Bay, and +0.3 pp in Noosa.

   

  The REIQ classes rental markets into three categories; tight, healthy, or weak. These markets are classified according to vacancy rates ranges:

• 0 - 2.5% = tight
• 2.6 - 3.5% = healthy
• 3.6% - plus = weak

Tightest and weakest markets

Queensland’s tightest markets remain overwhelmingly concentrated in regional and agricultural areas, where vacancy is effectively non-existent. Cook (0.0%) continues to record zero availability, followed by Charters Towers and Goondiwindi (both 0.1%), Maranoa (0.2%), Banana (0.3%), and Southern Downs (0.4%).

A second tier of highly constrained markets - all at 0.6% - includes Redcliffe, Mainland, Cassowary Coast, Mareeba and Tablelands. There’s also a wide cluster of markets are sitting between 0.7% and 0.8%, including Ipswich, Moreton Bay, Pine Rivers, Sunshine Coast, Caloundra Coast, Toowoomba, Burdekin and Central Highlands (all 0.7%), alongside Greater Brisbane, Outer Brisbane, Logan, Maryborough, Bundaberg, Rockhampton and South Burnett (all 0.8%).

Markets at or just below 1.0% vacancy continue to dominate the landscape, including Redland (0.9%), Brisbane LGA (1.0%), the Middle Brisbane ring (1.0%), Cairns (1.0%), Gympie (1.0%), Livingstone (1.0%) and Scenic Rim (1.0%).

Slightly higher, but still firmly in tight territory, are Inner Brisbane, the Gold Coast and Townsville (all 1.1%), followed by Caboolture and Mackay (both 1.2%), and a group at 1.3% including Sunshine Coast SD, Maroochy Coast, Hinterland, Lockyer Valley and Whitsunday.

The upper end of the tight range includes Fraser Coast (1.5%), Hervey Bay (1.6%) and Noosa (1.9%), alongside Mount Isa (1.9%), which continues to fluctuate in line with local economic conditions.

Only a small number of regions sit outside tight territory. In Gladstone the vacancy rate is fluctuating near the healthy range at 2.2%. We know confidence in the Gladstone sales market remains high with many project announcements such as $2b for the Boyne Smelter to continue, and the potential for an oil/fuel refinery for Gladstone. The Bay Islands (3.5%) sit at the top of the healthy range, while Isaac (5.5%) remains the only market clearly in ‘weak’ territory, reflecting a sustained oversupply relative to demand.

Movements over the quarter

The sharpest tightening was concentrated in resource-driven and previously weaker markets. Isaac recorded the largest decline (-0.6 percentage points), followed by the Bay Islands (-0.5pp). Gladstone, Mount Isa and Southern Downs each fell by -0.4pp, while Inner Brisbane (-0.3pp) also saw notable contraction.

A broad group of markets recorded moderate tightening of around -0.2pp, including Greater Brisbane, Brisbane LGA, the Middle ring, Ipswich, Moreton Bay, Bundaberg, Goondiwindi, Lockyer Valley and Maranoa, signalling continued absorption of rental stock across both metropolitan and regional areas.

Smaller declines of -0.1pp were recorded across Outer Brisbane, Logan, Redcliffe, Redland, Maryborough, Cassowary Coast, Gympie and Mareeba, while several markets held steady, including Pine Rivers, Gold Coast, Sunshine Coast, Cairns, Rockhampton, Toowoomba, Banana, Central Highlands, Charters Towers, Cook, Scenic Rim, Tablelands and Whitsunday.

In contrast, easing was most visible in lifestyle and coastal markets. The Maroochy Coast and Hinterland recorded the largest increases in vacancy (+0.5pp), followed by Hervey Bay (+0.4pp), Noosa (+0.3pp) and Fraser Coast (+0.2pp). More modest increases of +0.1pp were seen in Caboolture, Sunshine Coast SD, Caloundra Coast, Mackay, Townsville, Burdekin, Livingstone and South Burnett.

While there are some small pockets of easing this quarter, most changes are incremental, and in many areas vacancy rates are shifting within an already compressed range - offering little meaningful relief for renters across the state.

ENDS

Media enquiries:

Claire Ryan, Media and Stakeholder Relations Manager, The Real Estate Institute of Queensland
M: 0417 623 723 E: media@reiq.com.au

REIQ members can download the full vacancy rate spreadsheet here.

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