More Australians are renting their housing longer than in the past. But they have relatively little legal security against rent increases and evictions compared to tenants in other countries. When state governments suggest stronger protections for tenants, landlords and real estate agents claim it will cause disinvestment from the sector, increasing pressure on already tight rental markets.
In research for the Australian Housing and Urban Research Institute (AHURI), published today, we put the “disinvestment” claim to the test. We looked at the impacts of tenancy reforms in New South Wales and Victoria on rental property records over 20 years, as well as surveying hundreds of property investors. We found no evidence to support this claim.
We did find a high rate of turnover as properties enter and leave the sector. This happened regardless of tenancy law reforms. It’s a major cause of the unsettled nature of private rental housing for tenants.
