Australia’s rental market remains highly competitive, with more than half of applicants feeling pressured to offer above the advertised price to secure a home.

For aspiring homeowners and investors, these conditions underscore the growing importance of strategic mortgage planning and property ownership as a long-term solution to rental instability.

The Real Property Report 2025 reveals that 57% of renters feel compelled to offer higher rent, with some paying up to $124 more per week, amounting to an additional $6,000 annually.

The intense competition has led to two-thirds of renters taking extreme measures, such as applying for multiple properties simultaneously (26%), paying extra rent upfront (20%), or even covering months of rent in advance (14%).

In a further indication of the rental crisis, 13% of tenants admit to concealing pet ownership to improve their chances of securing a lease.

The national vacancy rate has fallen to a historic low of 1% as of January, with even tighter conditions in Brisbane (0.8%), Perth (0.4%), and Adelaide (0.5%), according to SQM Research.

CoreLogic data shows that national rents increased by 4.1% in the 12 months to February, further straining affordability.

For renters facing ongoing price hikes and uncertainty, homeownership may provide greater financial stability.

However, affordability challenges and deposit requirements remain key barriers.

Mortgage lenders and brokers must assist first-home buyers by offering tailored financing solutions, deposit assistance programs, and alternative lending options to transition renters into property ownership.

With rental conditions likely to remain tight, securing a competitive home loan and entering the property market sooner could provide a more sustainable financial future for many Australians struggling with rising rents.