State of flux in Queensland’s rental market, says REIQ

Queensland’s rental market remains tight overall, but over the last quarter more than half of the state's regions recorded an increase in vacancies, including some bigger spikes in parts of regional Queensland and some areas reaching their highest rates since COVID.

The Real Estate Institute of Queensland’s (REIQ) latest Residential Vacancy Rate Report for the June 2026 Quarter found 27 of the 50 regions tracked across the state recorded a rise in vacancies this quarter, compared to 13 that tightened and 10 that remained unchanged.

Despite these improvements, the stark reality is rental availability remains constrained across much of Queensland with 29 regions reporting measly vacancy rates of 1.0% or less, and only six regions recording vacancy rates above 2.0%.

Accordingly, the statewide vacancy rate only inched up to 1.0% this quarter – still sitting far below the REIQ’s healthy range of 2.6-3.5%.

The southeast corner including our capital city and Greater Brisbane were among the areas that stayed stubbornly unchanged from the previous quarter. However, notable loosening in vacancy rates were recorded in regional and coastal markets, including:

• Fraser Coast (2.2%) and Hervey Bay (2.3%) - both up by +0.7 percentage points,
• Maryborough (1.4%) went up by +0.6pp, and
• Gympie (1.4%), Mareeba (1.0%), Caloundra Coast (1.1%), Gold Coast (1.5%), and Burdekin (1.1%) were all up by +0.4pp.

Gladstone (2.1%) and Noosa (2.2%) were among the regions just shy of a healthy rate.

Several areas recorded their highest vacancy rates since the onset of the pandemic, including Fraser Coast, Hervey Bay, Maryborough, Gold Coast, Mackay (1.2%), Rockhampton (1.0%) and Mareeba. For Gympie, it’s the highest rate in almost a decade.

REIQ CEO Antonia Mercorella said while the vacancy rate data showed more availability in the Wide Bay Burnett this quarter, the market remained far from balanced.

“We’re seeing more regions relax than tighten, particularly across parts of regional Queensland, but we're still a long way from what anyone would call a healthy rental market,” Ms Mercorella said.

“We're hearing reports of more break leases, more tenants trading down to cheaper accommodation, and some higher-priced rentals taking longer to secure a tenant – suggesting that affordability is influencing behaviour.

“Rental markets in these regions could be gradually rebalancing, as new housing comes online with a promising upward trend in the number of building approvals and migration levels continuing to rise but at a slower pace.

“Further, in places like the Fraser Coast, local agents report the completion of major construction projects, like the Hervey Bay Community Hub that previously brought temporary workers into the region, may also be playing a role.

“However, what exactly is behind these handful of spiked vacancy rates is difficult to pinpoint and the REIQ cautions against reading too much into quarterly fluctuations when overall vacancy rates remain exceptionally tight across most of the state.”

Ms Mercorella said feedback from property managers suggested financial pressures were building on both sides of the rental equation.

“We’re hearing that many property owners are feeling the squeeze too, with higher mortgage repayments, insurance, maintenance and compliance costs stretching household budgets,” she said.

“Property managers are reporting that some owners are becoming more reluctant to undertake non-essential maintenance and upgrades because they’re finding it harder to absorb the cost. That’s a sign of strain throughout the housing system, not just among tenants.”

Ms Mercorella said the longer-term outlook of Queensland’s rental market would depend heavily on housing supply and investment settings.

“Rent data for the June quarter showed Brisbane’s median weekly rent is now sitting around $700 per week, however because of Queensland’s rent increase cap, we won’t see the full impact of recent Federal Budget taxation reforms for some time,” she said.

“The Federal Government made clear their intent was to make property investment less attractive, so it’s difficult to see how making investment less appealing won’t eventually flow through to rental supply.

“When we rely so heavily on private investors to house Queenslanders, any policy that discourages investment ultimately has implications for renters too.”

She said the answer remained increasing housing supply across the ownership, rental, social and affordable housing sectors.

“The latest social housing figures show there are now 41,298 people registered for social housing in Queensland, highlighting that while promising inroads are being made to tackle the waitlist, housing demand remains immense,” she said.

“We welcome the recent Productivity Commission’s interim report on housing supply regulation, particularly its bold recommendations around increasing housing density and diversity with three-storey townhouses to become commonplace, removing minimum lot sizes and floor space ratios, and streamlining approvals.

“The REIQ also recognises we need the workforce to build those homes, which is why we called for and welcome initiatives such as the Queensland Government's TradieStart program offering employers apprenticeship incentives to ensure we have enough hands on the tools.

“Ultimately, there is only one sustainable solution to housing affordability and rental pressures in Queensland, and that's more housing supply.”

Fast facts: June Quarter 2026

• Queensland Vacancy Rate: 1.0%.
• Tightest Vacancy Rates: 0.0% in Cook and Goondiwindi, and 0.3% in Charters Towers.
• Highest Vacancy Rates: 6.2% in Isaac, 4.3% in Bay Islands (including North Stradbroke, Russell, Macleay, Karragarra, Lamb, and Coochiemudlo Islands), and 2.3% in Hervey Bay, 2.2% in Fraser Coast and Noosa, and 2.1% in Gladstone.
• Biggest falls over quarter (worsening): -0.7 percentage points (pp) in Mount Isa, -0.4 pp in Whitsunday, and -0.3 pp in Townsville and Lockyer Valley.
• Biggest rises over quarter: +0.8 pp in Bay Islands (largely rebounding from previous quarter), +0.8 pp in Isaac (also rebounding), +0.7 pp in Hervey Bay, and +0.7 pp in Fraser Coast, +0.6 pp in Maryborough, +0.4 in Mareeba, Gympie, Burdekin, Caloundra Coast, and Gold Coast.

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 rental markets remain concentrated in regional areas – albeit at oppositive ends of the State, with Cook and Goondiwindi (both 0.0%) recording effectively no rental availability. Charters Towers (0.3%), Banana (0.4%) and Maranoa (0.4%) followed closely behind, while Redcliffe, Cassowary Coast and Southern Downs (all 0.5%) remained incredibly tight.

Across southeast Queensland, conditions remained largely unchanged and firmly in tight territory, including Greater Brisbane (0.8%), Brisbane LGA (1.0%), Ipswich (0.7%), Logan (0.8%), Moreton Bay (0.7%), Pine Rivers (0.6%), and the Sunshine Coast (0.9%).

While still classified as tight markets under the REIQ’s methodology, a growing number of coastal and regional areas are edging closer towards healthier conditions, including Hervey Bay (2.3%), Fraser Coast (2.2%), Noosa (2.2%) and Gladstone (2.1%). Isaac (6.2%) and the Bay Islands (4.3%) remain Queensland's only ‘weak’ rental markets.

Several areas recorded their highest vacancy rates since the onset of the pandemic, including Fraser Coast, Hervey Bay, Maryborough (1.4%), Gold Coast (1.5%), Mackay (1.2%), Rockhampton (1.0%) and Mareeba (1.0%). For Gympie (1.4%), it’s the highest rate in almost a decade.

Movements over the quarter

The most notable easing was seen in regional and coastal markets. The Bay Islands recorded the largest increase in vacancy (+0.8 percentage points), though this largely reflects a rebound from the previous quarter's decline. Isaac also rose by +0.7 percentage points following a similar contraction in the March quarter.

Hervey Bay and Fraser Coast both recorded substantial rises of +0.7 percentage points, followed by Maryborough (+0.6pp). Mareeba, Gympie, Burdekin, Caloundra Coast and the Gold Coast each increased by +0.4pp. Several regions continued an established trend of easing conditions, including Hervey Bay, Fraser Coast, Burdekin, Caloundra Coast, Noosa and Livingstone.

In contrast, Mount Isa (1.2%) recorded the state's most significant tightening movement, falling by -0.7 percentage points. Whitsunday (0.9%) contracted by -0.4pp, while Townsville (0.9%) and Lockyer Valley (1.0%) each tightened by -0.3pp. Slight tightening was seen in Cairns (0.8%), South Burnett (0.6%), Caboolture (1.1%), and Toowoomba (0.6%).

Mount Isa and Lockyer Valley have now tightened for consecutive quarters, while Redcliffe, Gladstone, Cassowary Coast and Goondiwindi also continued a gradual tightening trend. Stagnant regions were clustered around the capital including Brisbane LGA, Greater Brisbane, Ipswich, Logan and Moreton Bay.

ENDS

Media enquiries: Claire Ryan, REIQ Media Manager, M: 0417 623 723 E: media@reiq.com.au

REIQ members can download the full vacancy rate spreadsheet here.

Read another media release from the REIQ: Queensland still wins State of Relocation, says REIQ.

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