Demystifying the rental vacancy rate measure: a critical review and policy implications

Margaret Reynolds; Rupa Ganguli; Zoë Goodall; Liss Ralston; Christian A. Nygaard; Terry Burke

doi:10.18408/ahuri5132801

Demystifying the rental vacancy rate measure: a critical review and policy implications

Margaret Reynolds
, Rupa Ganguli
, Zoë Goodall
, Liss Ralston
, Christian A. Nygaard
, Terry Burke

School of Business

Swinburne University of Technology

Research output: Contribution to journal › Article › peer-review

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Abstract

What this research is about
This research is the first critical analysis of the Australian private rental vacancy rate (RVR) — an important, but often unquestioned, housing market signal. It investigates the different methodologies, strengths and limitations of the measure, and how it is used and interpreted.

Why this research is important
Policymakers and developers commonly use RVRs to guide decisions about where and when to build housing, and for rental providers, they can be a signal to raise rents. A comprehensive understanding of this measure is therefore
crucial, particularly during a housing crisis.

Yet RVRs are provided only by commercial organisations, using methodologies that are often opaque and produce different outcomes. This research presents a detailed examination of this key housing market indicator to better inform decision-making in public and private sectors.

Original language	English
Number of pages	130
Journal	AHURI Final Report
Volume	450
DOIs	https://doi.org/10.18408/ahuri5132801
Publication status	Published - 5 Dec 2025

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 11 Sustainable Cities and Communities

Keywords

equilibrium (economics)
equilibrium
rental market
residential
housing
data analysis
data
Proptech
market analyses and perspectives
rental housing
Rents
vacancy
Rent affordability
producer services
Policy development
service industries
digital age
digital communication
listing

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10.18408/ahuri5132801Licence: CC BY-NC

full textFinal published version, 10.7 MBLicence: CC BY-NC

Cite this

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title = "Demystifying the rental vacancy rate measure: a critical review and policy implications",

abstract = "What this research is about This research is the first critical analysis of the Australian private rental vacancy rate (RVR) {\textemdash} an important, but often unquestioned, housing market signal. It investigates the different methodologies, strengths and limitations of the measure, and how it is used and interpreted. Why this research is important Policymakers and developers commonly use RVRs to guide decisions about where and when to build housing, and for rental providers, they can be a signal to raise rents. A comprehensive understanding of this measure is therefore crucial, particularly during a housing crisis. Yet RVRs are provided only by commercial organisations, using methodologies that are often opaque and produce different outcomes. This research presents a detailed examination of this key housing market indicator to better inform decision-making in public and private sectors.",

keywords = "equilibrium (economics), equilibrium, rental market, residential, housing, data analysis, data, Proptech, market analyses and perspectives, rental housing, Rents, vacancy, Rent affordability, producer services, Policy development, service industries, digital age, digital communication, listing",

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day = "5",

doi = "10.18408/ahuri5132801",

language = "English",

volume = "450",

journal = "AHURI Final Report",

issn = "1834-7223",

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AU - Reynolds, Margaret

AU - Ganguli, Rupa

AU - Goodall, Zoë

AU - Ralston, Liss

AU - Nygaard, Christian A.

AU - Burke, Terry

PY - 2025/12/5

Y1 - 2025/12/5

N2 - What this research is about This research is the first critical analysis of the Australian private rental vacancy rate (RVR) — an important, but often unquestioned, housing market signal. It investigates the different methodologies, strengths and limitations of the measure, and how it is used and interpreted. Why this research is important Policymakers and developers commonly use RVRs to guide decisions about where and when to build housing, and for rental providers, they can be a signal to raise rents. A comprehensive understanding of this measure is therefore crucial, particularly during a housing crisis. Yet RVRs are provided only by commercial organisations, using methodologies that are often opaque and produce different outcomes. This research presents a detailed examination of this key housing market indicator to better inform decision-making in public and private sectors.

AB - What this research is about This research is the first critical analysis of the Australian private rental vacancy rate (RVR) — an important, but often unquestioned, housing market signal. It investigates the different methodologies, strengths and limitations of the measure, and how it is used and interpreted. Why this research is important Policymakers and developers commonly use RVRs to guide decisions about where and when to build housing, and for rental providers, they can be a signal to raise rents. A comprehensive understanding of this measure is therefore crucial, particularly during a housing crisis. Yet RVRs are provided only by commercial organisations, using methodologies that are often opaque and produce different outcomes. This research presents a detailed examination of this key housing market indicator to better inform decision-making in public and private sectors.

KW - equilibrium (economics)

KW - equilibrium

KW - rental market

KW - residential

KW - housing

KW - data analysis

KW - data

KW - Proptech

KW - market analyses and perspectives

KW - rental housing

KW - Rents

KW - vacancy

KW - Rent affordability

KW - producer services

KW - Policy development

KW - service industries

KW - digital age

KW - digital communication

KW - listing

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VL - 450

JO - AHURI Final Report

JF - AHURI Final Report

ER -

Demystifying the rental vacancy rate measure: a critical review and policy implications

Abstract

UN SDGs

Keywords

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