Australia’s agriculture sector is facing a new challenge: a tightening rental market. National rental vacancy rates fell to a record low of 1.2% in July, according to SQM Research, leaving farmers struggling to secure suitable housing for their workers. This scarcity is reshaping how agribusinesses manage staffing, accommodation, and the overall cost of doing business.

The Regional Rental Squeeze

While some regional areas (75–100km from capital city CBDs) have seen rental inflation moderate slightly since 2023, the easing has been slower than in urban centres. Regions more than 500km from the CBD have enjoyed relatively stable rents—but that stability often comes at a cost.

Since 2018, rent growth in many regional areas has outpaced capital cities.

Queensland illustrates the problem clearly: Charters Towers has the state’s third-lowest rental availability at just 0.3%, the Burdekin sits at 0.5%, and Townsville at 0.9%. For farmers, these tight conditions make finding accommodation for staff a daily struggle.

The Real Estate Institute of Queensland’s June Quarter 2025 Residential Vacancy Rate Report highlights the scale of the problem. Across Queensland, only four LGAs—Townsville, Rockhampton, Cassowary Coast, and Maranoa—saw tighter vacancy rates during the March quarter. Fifteen LGAs saw no change, while 31 regions experienced slight easing.

Despite these minor shifts, the statewide vacancy rate rose only slightly from 0.9% to 1.0%. Alarmingly, no region currently falls within the REIQ’s “healthy” vacancy range of 2.6–3.5%.

The widening rental gap between urban and regional Australia is creating real stress for communities outside major cities. Families and workers face rising costs and limited options, creating housing insecurity that particularly affects agricultural regions.

For farmers, the challenge is twofold: attracting and retaining staff in a tight labour market is already difficult, and the lack of available housing only intensifies the problem. Many are forced to offer accommodation subsidies or build on-site housing to maintain a viable workforce.

Addressing the regional rental crisis ultimately requires collaboration from policymakers, industry, and communities. However, there are some strategies that agribusinesses can employ to help mitigate the impact of the rental crunch on their operations.

• Supporting staff to secure affordable housing through coordinators or agents.
• Helping workers find affordable housing via local partnerships.
• Assisting staff with housing through coordinators or real estate connections.

As Australia’s rental market evolves, the needs of regional communities need to be considered. Tackling the rental gap and ensuring access to safe, affordable housing is essential for supporting regional livelihoods and keeping the nation’s agricultural sector strong.

Sources: Farm Online, ABS, Townsville Bulletin