Vacancy rates explained: why the numbers differ
Three well-known measures of rental vacancy give three different answers. They are all useful, because each one counts empty rentals a different way.
The latest readings
Sources: Cotality HVI Nov 2026; SQM Research; Domain via ABC News.
| Cotality (Oct) | 2.3% |
| SQM (Sep) | 1.4% |
| Domain (Sep qtr) | 1.0% |
Why they differ
- SQM counts online listings that have been advertised for three weeks or more.
- Cotality uses its own listings and rental data.
- Domain uses listings on its own site.
The level differs, but all three show vacancies rising this year.
Which number should you trust?
All three are useful. Each source uses different listings and rules for what counts as 'vacant', so their levels won't match. What matters is the direction: when all three are rising together, as they are now, it is a strong sign renters are getting more choice.
A reading around 3% is often seen as a balanced market. All three measures are still below that, so the market remains tight even as it loosens.
Reading rental news like a pro
- Look for the source and the period covered (month, quarter or year).
- Check whether a figure is advertised (asking) rent or rent people actually pay.
- Watch the trend over several months rather than one reading.
- Remember that local conditions can differ a lot from the overall picture.
How to use them
Watch the direction, not one number. Rising vacancy usually means slower rent rises and more choice for renters.
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- Cotality Home Value Index, November 2026 (PDF)
- SQM Research
- ABC News: Tenants hit breaking point as rents stay at records (8 Oct 2026)
Figures are from the sources above at the time of writing. This article is general information, not financial or legal advice.