New research from the Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA) highlights a significant shortfall of property investors, exacerbating Australia’s rental crisis.

The study found that while Australia’s population grew by 1.8 million between March 2019 and March 2024, the rental market needed an additional 145,000 investors to supply 212,000 new rental properties. However, Australian Taxation Office (ATO) data shows only 110,000 investors entered the market during this time, leaving a gap of 35,000.

PIPA Chair Nicola McDougall said investor numbers had grown steadily until 2018 but have since been stifled by policy changes.

“Restrictive lending, tax hikes, and increased regulations have deterred investors, and we’re seeing the consequences now,” she said.

PICA Chair Ben Kingsley noted the impact on rental supply, citing a drop in the national vacancy rate from 3% in 2017 to 1.2% in 2024.

“This shortage of investors has directly led to fewer properties available for rent, worsening conditions for tenants,” he said.

Industry experts are calling for policy reforms to attract more investors and ease rental pressures.

Originally Published: Your Property Investor | Page 6 | February 2025

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