The percentage of available units in a rental property that are unoccupied or unoccupied at a specific time is called the vacancy rate.
The lower rate is tougher to find accommodation for, as it requires a lot of money.
Rental vacancy rates dropped slightly in July, down 0.04 percent from 1.43 percent in August, according to PropTrack's August Market Insight report.
In July, Sydney experienced a significant drop in rental conditions, with vacancy rates falling 0.09 percent to 1.65 percent.
Melbourne's rental vacancy rate held steady at 1.41 per cent in July. It is currently sitting 0.82 percent lower than 12 months ago, the largest annual drop in any capital city.
The rental vacancy rate in Brisbane rose just 0.01 percent in July to 1.15 per cent.
The tightest rental market in Adelaide and Perth continues, with vacancy still sitting below 1 per cent in these cities.
The vacancy rate fell to 1.51 percent in the regions over July, bringing the total number of rental properties to a drop of 0.04 percent.
Both capital cities and regional areas saw the supply of rental properties decrease over July, PropTrack economist Anne Flaherty said.
Rental vacancies in Melbourne have risen significantly in the past 12 months, which has resulted in the largest drop in any market.
As Australia's fastest-growing capital city, Melbourne's vacancy is likely to drop further and result in higher rents.
While vacancy rates in regional areas dropped over July, they are above the levels seen 12 months ago in every state, with regional NT and Tasmania experiencing the biggest jump in availabilities.
This appears to have been a slowdown in the trend towards regional living that accelerated during the pandemic.
Although pressure is likely to ease soon for renters, with the number of vacant properties projected to remain at extremely low levels over at least the next 12 months. Australia's rent cost is likely to go up in the months to come, with the national vacancy rate falling in July. Continuing low vacancy rates mean higher rental prices into the future, impact economics and policy lead economist Angela Jackson told The Drum.
Renters are losing their faith in rental vacancy, which is a negative sign due to fewer rental properties coming to market.
Dr Jackson said renters were also likely to face overcrowding in housing if they found accommodation.
We need to use the existing housing stock that we have now better to turbocharge the supply of housing into the rental market.