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Market Forces acting as barriers in the Rental Market 

Rental Market Barriers

The real estate market in Queensland, Australia seems to face new peaks and lows in 2024 as the interest rates have declined. And like that, the majority of renters have felt a slight increase in the payments. However, several market forces affect the overall rental market. These factors not only affect the renters but also the landlords creating challenges for both parties. Since, the rental market is shaped by the unique blend of social, economic and geographic factors. In this blog post, we will talk about some market forces acting as barriers in the rental market. 

Demand and supply imbalance 

As compared to the demand for the housings, it was found that supply was quite less. Most of the residents are facing a rental crisis which is making it difficult for them to find appropriate housing. And due to this, the rental prices are increasing and giving people limited choices. 

Zoning rules and regulations

Another major force that affects the rental market is zoning rules & regulations. Talking about the zoning in Queensland, every piece of land is included in a zone that is allotted for several purposes, such as commercial, residential or industrial purposes and many more. 

The reason why this affects the rental market is because these rules intend to maintain safety & order in communities. Hence, this ultimately restricts the supply of housing units and the construction of new buildings.

Economic Forces 

Due to conditions such as economic downturns and recessions, the whole real estate market gets upside down. It not only increases the property prices but also affects the interest rates. So, these economic forces affect an individual’s ability to afford housing and put pressure on the rental market.

Interest rates and Financing 

In present times, the real estate market of Queensland is experiencing some changes due to the changes in interest rates. And like that, when the interest rates are high it impacts the cost of financing for the property developers. Hence, the high cost of financing can lead to reduced construction of new rental properties.

Understanding these rental market barriers is necessary to create practical solutions for the rental housing crisis. The solutions include being aware of the zoning rules, investing in affordable housing and encouraging diverse property options. 

However, there are some circumstances where you might need the help of an expert.

For Enquiry +61 451 714 126 here or call us directly at 1800 MY SAPPHIRE!

Disclaimer



This information is for general informational purposes only and is not intended as professional advice. While we strive to present accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the content provided.



Real estate transactions and financial decisions involve complex considerations that may vary based on individual circumstances. Do not consider the content provided as a substitute for professional advice tailored to your specific situation.



Conducting thorough research and consulting with licenced and experienced professionals in the relevant fields is crucial. Every individual’s financial and real estate situation is unique, and professional advice is essential to making informed decisions.

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