Rental Market Pressures in Mackay – What It Means for Investors

According to the (REIQ) June Quarter 2025 Residential Vacancy Rate Report, almost all regions across Queensland (48 of 50) remain in a “tight” rental market—meaning vacancy rates are at or below 2.5%—with several areas nearly devoid of available rentals.

During this quarter, the overall vacancy rate hovered around 1.0%, up slightly from 0.9%, signalling stability but still severe undersupply. REIQ CEO Antonia Mercorella notes that such conditions highlight the urgent need for more investor participation and new dwelling construction to bridge the supply-demand gap.

Locally, Mackay recorded a vacancy rate of 0.8%, reflecting intense competition among renters—properties are listed and filled quickly. As of March 2025, median weekly rents for both houses and units sit at around $500, attracting investor interest due to strong rental yields.

Some regions, including Goondiwindi and Cook, have reached critical levels—Goondiwindi reported just a 0.2% vacancy rate, with only two homes available for rent, while Cook remains at a complete 0.0% vacancy. Mackay, in comparison, while tight, fares better—but still underscores the broader regional pressure.

• Strong Yields & Low Vacancies: With rental properties in high demand and minimal vacancy periods, investors can benefit from stable and potentially elevated income.
• Growing Investor Confidence: Queensland recorded a 24% increase in new investor loans by March 2025, the highest among all states—indicative of rising investor activity.
• Balancing Risks: Although demand is high, rental activity has been reported as subdued—longer days on market and stricter tenant selection are signs investors should remain cautious.
• Housing Diversification is Key: REIQ urges the sector to explore diverse housing solutions—such as build-to-rent, smaller dwellings, multi-generational living, and fully adaptable homes to reflect changing market needs.
  

The Mackay rental market continues to offer excellent opportunities for landlords and investors. With low vacancies, solid yields, and a growing demand for diverse housing, the region remains one of Queensland’s most attractive investment markets.

Thinking about investing in Mackay’s property market? Contact Mackay City Property today . Our team can guide you through the latest rental insights and help you maximise your investment returns.