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

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

No 3xrh4_v1, SocArXiv from Center for Open Science

Abstract: 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. 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.

Date: 2025-12-04
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:3xrh4_v1

DOI: 10.31219/osf.io/3xrh4_v1

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