The solution to Queensland’s rental crisis seems straightforward on paper: build more homes. But the reality of delivering new housing supply in Queensland — particularly in Southeast Queensland — is far more complex than the headlines suggest, and understanding why helps explain why the crisis is unlikely to resolve quickly.
Brisbane is required to deliver around 8,000 attached dwellings annually to meet the targets set under the South East Queensland Regional Plan 2023. According to analysis prepared by Urbis for the Property Council of Australia, Brisbane is not coming close to meeting that target. Despite recent policy reforms and a modest lift in market activity, the gap between what the city needs and what is being built continues to widen, not narrow.
The barriers to new supply are multiple and compounding. Construction costs rose sharply following the pandemic, with materials and labour both significantly more expensive than they were five years ago. Many apartment developments that were viable at pre-2022 cost levels are no longer financially feasible at current construction prices and interest rates, even with strong rental demand.
Planning and approval timelines add further delay. Development applications in Brisbane can take many months to work through the assessment process, and uncertainty around zoning, overlays, and community objections can extend this timeline further. Developers operating on thin margins cannot absorb prolonged uncertainty.
Queensland’s rental population is higher than the national average at 36%, meaning that a larger share of Queenslanders depend on the private rental market for housing than in most other states. When supply falls short of that demand, it is — as the Real Estate Institute of Queensland has noted — the most vulnerable members of the community who are left with nowhere to go.
At Sapphire Estate Agents Queensland, we work within the market as it exists today while supporting every client — landlord, tenant, and buyer alike — to make the best possible decisions in a challenging environment. Contact our team today.
