Is a rental cap the answer to Queensland’s rental crisis? 

Recently, the Queensland Government introduced the idea of a rental cap. Read on to find out whether we think this is the answer to the state’s rental crisis. 

Queensland households are facing a housing crisis as rental prices across the state continue to skyrocket. A recent report commissioned by the Queensland Council of Social Service (QCOSS) found that approximately 150,000 households in Queensland are currently unable to find affordable housing. 

The report also revealed that rental prices in Queensland are growing faster than in any other state or territory in Australia. In fact, Brisbane experienced the largest annual rent growth for both houses and units last year, with increases of 13.4% and 13%, respectively. The situation is particularly dire in regional markets, where rents have soared 80% in Gladstone, 51% in Noosa, and 33% in the Gold Coast over the past five years. 

In response to this crisis, Queensland Premier Annastacia Palaszczuk has pledged to address the possibility of implementing a rental cap. This would mean that rental prices would be capped at a certain amount, preventing property owners from increasing rents beyond that level. This is something the Premier believes could help alleviate the financial stress on families who are constantly facing huge increases in rent. 

However, many in the real estate industry are concerned that this move could do more harm than good. According to Antonia Mercorella, CEO of the Real Estate Institute of Queensland (REIQ), rent control is not the solution. In fact, she believes that it could discourage further supply of rental properties as rent capping may in fact deter investors from supplying property and could further worsen the housing crisis overall 

So, what does this all mean for Queensland households? If you're struggling to find affordable housing or are facing steep rent increases, it's important to seek help and support. The Queensland Government offers a range of services and programs to assist those in need, including the RentConnect service, which can help you find and secure a rental property. 

If you're a property owner, it's important to keep up to date with changes in the rental market to ensure your property is priced correctly for supply to meet demand. Working with a reputable real estate agency that specialises in Property Management, like Code Property Group in QLD, can help ensure you're maximizing your rental income while providing a quality home for your tenants. 

The housing crisis in Queensland is a complex issue with no easy solutions. However, by seeking support and guidance, and working with trusted experts, both tenants and property owners can navigate this challenging landscape and ensure they're making the most of their rental opportunities. If you'd like more information or assistance, please don't hesitate to contact us at Code Property Group, where our team of rental experts are always happy to help.