Investment11 min read
Brisbane's Rental Market in February 2026: Vacancy Rates, Real Yields, and What the Reforms Actually Changed
PA
PropertyLens AI## Brisbane Rental Market: February 2026 in Numbers
Brisbane's rental vacancy rate sits at **1.4%** as of February 2026 — up from the extreme lows of 0.7–0.9% in 2022–23, but still well below the 2.5–3% economists consider balanced. Median weekly rents for a 3-bedroom house in the inner ring now range from $920 (West End) to $1,100 (Teneriffe). Year-on-year rent growth has moderated to 3–6%, down sharply from the 15–20% spikes of 2022.
Meanwhile, Queensland's rental reforms — including limits on rent increases to once per 12 months and restrictions on without-grounds evictions — have reshaped the rules for both landlords and tenants. Net yields on investment properties in many Brisbane suburbs have compressed below 3.5% once management fees, rates, insurance, and maintenance are factored in.
This article breaks down the current rental data, explains the reform changes, and works through the real arithmetic for both sides of the lease.
## Where Vacancy Rates Actually Sit
At the start of 2026, Brisbane's overall rental vacancy rate sits around **1.4%**. That's up from the extreme lows of 0.7–0.9% seen through 2022 and 2023, but still well below the 2.5–3% level that economists consider a balanced market.
The practical effect: tenants still face competition for quality properties, particularly in the inner ring. Landlords, meanwhile, are not experiencing the frantic bidding wars of two years ago, but well-maintained properties in good locations are still leasing within two to three weeks.
Vacancy rates vary significantly by suburb and property type:
- **Inner Brisbane (0–5km)**: 1.2–1.6% — Teneriffe, New Farm, West End, Paddington, Fortitude Valley
- **Middle ring (5–12km)**: 1.3–1.8% — Annerley, Coorparoo, Chermside, Nundah, Kedron
- **Outer ring (12km+)**: 1.6–2.4% — Carindale, Aspley, Springwood, Redbank Plains
Units in the inner city have seen slightly higher vacancy than houses, partly because the new apartment supply that was approved in 2023–24 has started to come online. Houses remain tighter across almost every distance band.
## Median Rents by Suburb: February 2026
Rent growth has slowed considerably from the 15–20% annual increases seen in 2022. The current picture is more like 3–6% year-on-year in most suburbs — still above wage growth, but no longer the shock it once was.
Here are approximate median weekly rents for houses and units across key Brisbane suburbs:
**Inner suburbs (houses / units)**
- New Farm: $1,050 / $620
- Paddington: $980 / $570
- West End: $920 / $560
- Teneriffe: $1,100 / $680
- Fortitude Valley: $820 / $530
**Middle ring (houses / units)**
- Annerley: $750 / $490
- Coorparoo: $780 / $510
- Nundah: $720 / $480
- Kedron: $700 / $460
- Chermside: $680 / $440
**Outer ring (houses / units)**
- Carindale: $650 / $420
- Aspley: $630 / $410
- Springwood: $580 / $390
- Redbank Plains: $520 / $360
These figures reflect 3-bedroom houses and 2-bedroom units as the reference point. One-bedroom units in the inner ring typically sit in the $430–$520 range.
## How to Calculate Net Rental Yield (Properly)
Gross yield is the figure agents love to quote. Net yield is the one that actually matters.
**Gross yield** = (Annual rent ÷ Property value) × 100
A Coorparoo house renting at $780/week on a $900,000 purchase price:
$780 × 52 = $40,560 annual rent
$40,560 ÷ $900,000 = **4.5% gross yield**
That sounds reasonable. But gross yield ignores every cost of ownership.
**Net yield** deducts:
- Property management fees (typically 8–10% of rent in Brisbane)
- Letting fees (usually 1–2 weeks' rent per tenancy)
- Council rates (~$1,800–$2,400/year for a typical house)
- Water rates (~$1,000–$1,400/year, landlord pays fixed charges)
- Insurance (landlord's insurance ~$1,500–$2,200/year)
- Maintenance and repairs (budget 0.5–1% of property value annually)
- Body corporate levies (if applicable — can range from $3,000 to $15,000+/year for units)
- Accounting fees (~$400–$600/year)
Using the same Coorparoo example with realistic costs:
| Cost Item | Annual Amount |
|---|---|
| Property management (9%) | $3,650 |
| Letting fee (1.5 weeks) | $1,170 |
| Council rates | $2,100 |
| Water (fixed charges) | $1,200 |
| Landlord's insurance | $1,800 |
| Maintenance (0.7% of value) | $6,300 |
| Accounting | $500 |
| **Total costs** | **$16,720** |
Net income: $40,560 − $16,720 = $23,840
Net yield: $23,840 ÷ $900,000 = **2.65%**
That's the real number. And it doesn't include mortgage interest, which for most investors is the largest single cost of all.
This is why so many Brisbane investors are negatively geared — the rental income alone rarely covers all holding costs at current property prices. The investment thesis relies on capital growth making up the difference. Whether that continues is the question every investor should be asking honestly.
## Property Management Costs: What You're Actually Paying For
Brisbane property management fees typically run:
- **Management fee**: 7.5–10% of collected rent (the ongoing weekly fee)
- **Letting fee**: 1–2 weeks' rent when a new tenancy is established
- **Lease renewal fee**: $100–$200 per renewal
- **Routine inspection fee**: $50–$100 per inspection (usually 3–4 per year)
- **Maintenance coordination fee**: Some agencies charge 5–10% on top of trade invoices
- **EOFY statement fee**: $50–$150
The cheapest option is rarely the best. A property manager charging 7.5% who misses a maintenance issue, places a poor tenant, or handles a dispute badly can cost you far more than the 1.5% saving. Ask about their average days-to-let, their inspection frequency, and how they handle maintenance requests before price becomes the deciding factor.
Some investors in Brisbane are moving to flat-fee property management models (typically $150–$200/month), which can represent better value on higher-rent properties. Worth comparing if your rent is above $700/week.
## Queensland Rental Reforms: What Changed and What It Means
Queensland's rental law changes — rolled out in stages since 2023 — represent the most significant rewrite of the *Residential Tenancies and Rooming Accommodation Act 2008* in the state's history. Here's what both sides need to understand.
### The End of No-Grounds Terminations
This is the reform that generated the most debate. Landlords can no longer end a tenancy without a valid reason. Approved grounds for ending a tenancy now include:
- The property is being sold and the buyer requires vacant possession
- The owner or an immediate family member intends to move in
- Significant renovation or demolition requiring vacant possession
- The tenant has breached the tenancy agreement
For tenants, this provides genuine security — particularly relevant for long-term renters who previously faced the threat of no-grounds notices. For landlords, it means you need a documented reason. Most landlords with legitimate intentions find this manageable. Those who used no-grounds notices as a workaround for problem tenancies now need to follow the breach and remedy process more carefully.
### Rent Increase Frequency
Rent increases are now limited to **once every 12 months**, and this applies regardless of whether the tenant is on a fixed-term or periodic lease. Previously, landlords could increase rent more frequently in certain circumstances. The 12-month rule is now a hard limit.
Tenants must receive at least **two months' written notice** of any rent increase.
### Modifications and Pets
Tenants now have a clearer pathway to request minor modifications to a property (picture hooks, garden beds, accessibility aids) and landlords can only refuse on specific grounds. Similarly, tenants can request to keep a pet, and landlords cannot unreasonably refuse.
For landlords, the practical implication is that blanket "no pets" policies are no longer enforceable. A reasonable refusal must be based on specific grounds — the property type, strata rules, or documented reasons. Most landlords who've adapted to this report it's less disruptive than they feared, provided the lease includes appropriate pet clauses.
### Bond and Rental Bidding
Rental bidding — where prospective tenants offer more than the advertised rent — is now prohibited. Landlords and agents cannot solicit or encourage higher offers. Properties must be advertised at a fixed price.
Bond remains capped at four weeks' rent for properties under $700/week, and can be up to four weeks for properties above that threshold.
### What Tenants Should Know About Their Rights
If you're a Brisbane tenant, the key practical points:
- You cannot be evicted without a valid documented reason
- Your rent can only increase once every 12 months with two months' notice
- You have the right to request a pet or minor modifications
- The Residential Tenancies Authority (RTA) provides free dispute resolution
- You can challenge a rent increase you believe is excessive through QCAT
- Landlords must maintain the property in a condition fit for habitation — this is a legal obligation, not a courtesy
The RTA's dispute resolution service is underused by tenants who don't know it exists. It's free, relatively fast, and handles everything from bond disputes to maintenance complaints.
## The Investment Case in 2026: Honest Numbers
With Brisbane house prices having run hard since 2020, the yield compression is real. A property that delivered 4.5% gross yield in 2019 might now deliver 3.2% on its current market value, simply because prices have grown faster than rents.
The investment case for Brisbane residential property in 2026 rests primarily on:
1. **Population growth**: Queensland continues to absorb interstate and overseas migration at above-average rates. Demand for housing — both owned and rented — remains structurally supported.
2. **Olympic infrastructure**: The 2032 Games continue to drive infrastructure spending, with transport upgrades and precinct development improving liveability in key corridors.
3. **Supply constraints**: The construction industry's capacity issues mean new supply is coming through more slowly than approvals suggest. Completed dwellings remain below demand.
4. **Interest rate trajectory**: With the RBA having moved rates down from their 2023–24 peaks, borrowing costs have eased, improving cash flow for leveraged investors.
None of this makes every Brisbane property a good investment. Location, property type, condition, and purchase price still determine whether an individual investment works. A 2.5% net yield on a $1.1 million property in Bulimba is a very different proposition from a 3.8% net yield on a $550,000 unit in Chermside.
## For Landlords: A Practical Checklist
- **Review your rent annually** — not to maximise it, but to ensure it's market-aligned. Underpriced properties attract tenants who know they have a good deal and stay; overpriced properties sit vacant.
- **Budget for maintenance** — deferred maintenance costs more and creates legal exposure under the new reforms.
- **Understand your insurance** — standard home insurance does not cover tenant-related damage. Landlord's insurance is not optional.
- **Know the reform obligations** — ignorance of the new rules is not a defence at QCAT.
- **Calculate net yield, not gross** — if your property manager is quoting gross yield, do the full calculation yourself.
## For Tenants: Navigating the Market
The market is tighter than tenants would like, but less extreme than 2022–23. A few practical notes:
- **Apply completely and promptly** — incomplete applications lose to complete ones, regardless of merit.
- **Know your rights under the reforms** — particularly around pets, modifications, and rent increases.
- **Use the RTA** for any dispute before it escalates. Most issues can be resolved without QCAT.
- **Consider longer fixed terms** — in a tight market, locking in rent for 12 or 18 months provides genuine protection.
- **Document everything** — entry condition reports, maintenance requests, and communications. In writing, every time.
## The Bigger Picture
Brisbane's rental market is not broken, but it is under pressure from both sides. Tenants face rents that have risen significantly over five years. Landlords face rising costs, tighter regulation, and yield compression. The reforms have shifted the balance of rights meaningfully toward tenants — which is where the evidence suggested it needed to shift — but they've also added compliance complexity for landlords.
The investors who will do well in this environment are those who treat property management as a business: keeping properties well-maintained, pricing rents fairly, understanding their obligations, and calculating returns honestly.
If you're trying to work out whether a specific Brisbane property stacks up as a rental investment — or want to understand what comparable properties are actually achieving in rent — PropertyLens's suburb analytics and yield modelling tools let you run the numbers on real Brisbane data before you commit.
Brisbane's rental vacancy rate sits at **1.4%** as of February 2026 — up from the extreme lows of 0.7–0.9% in 2022–23, but still well below the 2.5–3% economists consider balanced. Median weekly rents for a 3-bedroom house in the inner ring now range from $920 (West End) to $1,100 (Teneriffe). Year-on-year rent growth has moderated to 3–6%, down sharply from the 15–20% spikes of 2022.
Meanwhile, Queensland's rental reforms — including limits on rent increases to once per 12 months and restrictions on without-grounds evictions — have reshaped the rules for both landlords and tenants. Net yields on investment properties in many Brisbane suburbs have compressed below 3.5% once management fees, rates, insurance, and maintenance are factored in.
This article breaks down the current rental data, explains the reform changes, and works through the real arithmetic for both sides of the lease.
## Where Vacancy Rates Actually Sit
At the start of 2026, Brisbane's overall rental vacancy rate sits around **1.4%**. That's up from the extreme lows of 0.7–0.9% seen through 2022 and 2023, but still well below the 2.5–3% level that economists consider a balanced market.
The practical effect: tenants still face competition for quality properties, particularly in the inner ring. Landlords, meanwhile, are not experiencing the frantic bidding wars of two years ago, but well-maintained properties in good locations are still leasing within two to three weeks.
Vacancy rates vary significantly by suburb and property type:
- **Inner Brisbane (0–5km)**: 1.2–1.6% — Teneriffe, New Farm, West End, Paddington, Fortitude Valley
- **Middle ring (5–12km)**: 1.3–1.8% — Annerley, Coorparoo, Chermside, Nundah, Kedron
- **Outer ring (12km+)**: 1.6–2.4% — Carindale, Aspley, Springwood, Redbank Plains
Units in the inner city have seen slightly higher vacancy than houses, partly because the new apartment supply that was approved in 2023–24 has started to come online. Houses remain tighter across almost every distance band.
## Median Rents by Suburb: February 2026
Rent growth has slowed considerably from the 15–20% annual increases seen in 2022. The current picture is more like 3–6% year-on-year in most suburbs — still above wage growth, but no longer the shock it once was.
Here are approximate median weekly rents for houses and units across key Brisbane suburbs:
**Inner suburbs (houses / units)**
- New Farm: $1,050 / $620
- Paddington: $980 / $570
- West End: $920 / $560
- Teneriffe: $1,100 / $680
- Fortitude Valley: $820 / $530
**Middle ring (houses / units)**
- Annerley: $750 / $490
- Coorparoo: $780 / $510
- Nundah: $720 / $480
- Kedron: $700 / $460
- Chermside: $680 / $440
**Outer ring (houses / units)**
- Carindale: $650 / $420
- Aspley: $630 / $410
- Springwood: $580 / $390
- Redbank Plains: $520 / $360
These figures reflect 3-bedroom houses and 2-bedroom units as the reference point. One-bedroom units in the inner ring typically sit in the $430–$520 range.
## How to Calculate Net Rental Yield (Properly)
Gross yield is the figure agents love to quote. Net yield is the one that actually matters.
**Gross yield** = (Annual rent ÷ Property value) × 100
A Coorparoo house renting at $780/week on a $900,000 purchase price:
$780 × 52 = $40,560 annual rent
$40,560 ÷ $900,000 = **4.5% gross yield**
That sounds reasonable. But gross yield ignores every cost of ownership.
**Net yield** deducts:
- Property management fees (typically 8–10% of rent in Brisbane)
- Letting fees (usually 1–2 weeks' rent per tenancy)
- Council rates (~$1,800–$2,400/year for a typical house)
- Water rates (~$1,000–$1,400/year, landlord pays fixed charges)
- Insurance (landlord's insurance ~$1,500–$2,200/year)
- Maintenance and repairs (budget 0.5–1% of property value annually)
- Body corporate levies (if applicable — can range from $3,000 to $15,000+/year for units)
- Accounting fees (~$400–$600/year)
Using the same Coorparoo example with realistic costs:
| Cost Item | Annual Amount |
|---|---|
| Property management (9%) | $3,650 |
| Letting fee (1.5 weeks) | $1,170 |
| Council rates | $2,100 |
| Water (fixed charges) | $1,200 |
| Landlord's insurance | $1,800 |
| Maintenance (0.7% of value) | $6,300 |
| Accounting | $500 |
| **Total costs** | **$16,720** |
Net income: $40,560 − $16,720 = $23,840
Net yield: $23,840 ÷ $900,000 = **2.65%**
That's the real number. And it doesn't include mortgage interest, which for most investors is the largest single cost of all.
This is why so many Brisbane investors are negatively geared — the rental income alone rarely covers all holding costs at current property prices. The investment thesis relies on capital growth making up the difference. Whether that continues is the question every investor should be asking honestly.
## Property Management Costs: What You're Actually Paying For
Brisbane property management fees typically run:
- **Management fee**: 7.5–10% of collected rent (the ongoing weekly fee)
- **Letting fee**: 1–2 weeks' rent when a new tenancy is established
- **Lease renewal fee**: $100–$200 per renewal
- **Routine inspection fee**: $50–$100 per inspection (usually 3–4 per year)
- **Maintenance coordination fee**: Some agencies charge 5–10% on top of trade invoices
- **EOFY statement fee**: $50–$150
The cheapest option is rarely the best. A property manager charging 7.5% who misses a maintenance issue, places a poor tenant, or handles a dispute badly can cost you far more than the 1.5% saving. Ask about their average days-to-let, their inspection frequency, and how they handle maintenance requests before price becomes the deciding factor.
Some investors in Brisbane are moving to flat-fee property management models (typically $150–$200/month), which can represent better value on higher-rent properties. Worth comparing if your rent is above $700/week.
## Queensland Rental Reforms: What Changed and What It Means
Queensland's rental law changes — rolled out in stages since 2023 — represent the most significant rewrite of the *Residential Tenancies and Rooming Accommodation Act 2008* in the state's history. Here's what both sides need to understand.
### The End of No-Grounds Terminations
This is the reform that generated the most debate. Landlords can no longer end a tenancy without a valid reason. Approved grounds for ending a tenancy now include:
- The property is being sold and the buyer requires vacant possession
- The owner or an immediate family member intends to move in
- Significant renovation or demolition requiring vacant possession
- The tenant has breached the tenancy agreement
For tenants, this provides genuine security — particularly relevant for long-term renters who previously faced the threat of no-grounds notices. For landlords, it means you need a documented reason. Most landlords with legitimate intentions find this manageable. Those who used no-grounds notices as a workaround for problem tenancies now need to follow the breach and remedy process more carefully.
### Rent Increase Frequency
Rent increases are now limited to **once every 12 months**, and this applies regardless of whether the tenant is on a fixed-term or periodic lease. Previously, landlords could increase rent more frequently in certain circumstances. The 12-month rule is now a hard limit.
Tenants must receive at least **two months' written notice** of any rent increase.
### Modifications and Pets
Tenants now have a clearer pathway to request minor modifications to a property (picture hooks, garden beds, accessibility aids) and landlords can only refuse on specific grounds. Similarly, tenants can request to keep a pet, and landlords cannot unreasonably refuse.
For landlords, the practical implication is that blanket "no pets" policies are no longer enforceable. A reasonable refusal must be based on specific grounds — the property type, strata rules, or documented reasons. Most landlords who've adapted to this report it's less disruptive than they feared, provided the lease includes appropriate pet clauses.
### Bond and Rental Bidding
Rental bidding — where prospective tenants offer more than the advertised rent — is now prohibited. Landlords and agents cannot solicit or encourage higher offers. Properties must be advertised at a fixed price.
Bond remains capped at four weeks' rent for properties under $700/week, and can be up to four weeks for properties above that threshold.
### What Tenants Should Know About Their Rights
If you're a Brisbane tenant, the key practical points:
- You cannot be evicted without a valid documented reason
- Your rent can only increase once every 12 months with two months' notice
- You have the right to request a pet or minor modifications
- The Residential Tenancies Authority (RTA) provides free dispute resolution
- You can challenge a rent increase you believe is excessive through QCAT
- Landlords must maintain the property in a condition fit for habitation — this is a legal obligation, not a courtesy
The RTA's dispute resolution service is underused by tenants who don't know it exists. It's free, relatively fast, and handles everything from bond disputes to maintenance complaints.
## The Investment Case in 2026: Honest Numbers
With Brisbane house prices having run hard since 2020, the yield compression is real. A property that delivered 4.5% gross yield in 2019 might now deliver 3.2% on its current market value, simply because prices have grown faster than rents.
The investment case for Brisbane residential property in 2026 rests primarily on:
1. **Population growth**: Queensland continues to absorb interstate and overseas migration at above-average rates. Demand for housing — both owned and rented — remains structurally supported.
2. **Olympic infrastructure**: The 2032 Games continue to drive infrastructure spending, with transport upgrades and precinct development improving liveability in key corridors.
3. **Supply constraints**: The construction industry's capacity issues mean new supply is coming through more slowly than approvals suggest. Completed dwellings remain below demand.
4. **Interest rate trajectory**: With the RBA having moved rates down from their 2023–24 peaks, borrowing costs have eased, improving cash flow for leveraged investors.
None of this makes every Brisbane property a good investment. Location, property type, condition, and purchase price still determine whether an individual investment works. A 2.5% net yield on a $1.1 million property in Bulimba is a very different proposition from a 3.8% net yield on a $550,000 unit in Chermside.
## For Landlords: A Practical Checklist
- **Review your rent annually** — not to maximise it, but to ensure it's market-aligned. Underpriced properties attract tenants who know they have a good deal and stay; overpriced properties sit vacant.
- **Budget for maintenance** — deferred maintenance costs more and creates legal exposure under the new reforms.
- **Understand your insurance** — standard home insurance does not cover tenant-related damage. Landlord's insurance is not optional.
- **Know the reform obligations** — ignorance of the new rules is not a defence at QCAT.
- **Calculate net yield, not gross** — if your property manager is quoting gross yield, do the full calculation yourself.
## For Tenants: Navigating the Market
The market is tighter than tenants would like, but less extreme than 2022–23. A few practical notes:
- **Apply completely and promptly** — incomplete applications lose to complete ones, regardless of merit.
- **Know your rights under the reforms** — particularly around pets, modifications, and rent increases.
- **Use the RTA** for any dispute before it escalates. Most issues can be resolved without QCAT.
- **Consider longer fixed terms** — in a tight market, locking in rent for 12 or 18 months provides genuine protection.
- **Document everything** — entry condition reports, maintenance requests, and communications. In writing, every time.
## The Bigger Picture
Brisbane's rental market is not broken, but it is under pressure from both sides. Tenants face rents that have risen significantly over five years. Landlords face rising costs, tighter regulation, and yield compression. The reforms have shifted the balance of rights meaningfully toward tenants — which is where the evidence suggested it needed to shift — but they've also added compliance complexity for landlords.
The investors who will do well in this environment are those who treat property management as a business: keeping properties well-maintained, pricing rents fairly, understanding their obligations, and calculating returns honestly.
If you're trying to work out whether a specific Brisbane property stacks up as a rental investment — or want to understand what comparable properties are actually achieving in rent — PropertyLens's suburb analytics and yield modelling tools let you run the numbers on real Brisbane data before you commit.