While there’s some relief for renters looking for a home, the latest data shows affordability continues to dwindle.

Across the country tenants have been finding it difficult to secure a rental, with those who are currently housed holding onto their leases for as long as they can.

The latest PropTrack Market Insight Report shows that the national vacancy rate rose to 1.3% in May, which was a slight improvement on last month’s figure, rising 0.08ppt.

Canberra had the highest vacancy rate at 1.76% while Adelaide had the lowest with 1.03%, making it the most difficult city in Australia to find a rental.

Canberra had the largest increase to vacancy over the month, up 0.18ppt, while the vacancy rate in Sydney rose 0.16ppt to 1.46%.

PropTrack senior economist Paul Ryan said while there was a slight improvement in vacancy rates overall nationally, it’s still a difficult market for renters to navigate.

Adelaide remains the toughest city to find a rental, with the vacancy rate sitting just above 1%. Picture: Getty

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“The easing in conditions over the past three months has been most evident in Perth, Sydney and the ACT, with Perth seeing a substantial improvement after very tough conditions recently," he said.

“While availability remains low across all markets, Adelaide and Brisbane remain the toughest for renters."

“While any easing in conditions will be welcomed by renters, available properties remain very scarce with the vacancy rate at around half the levels seen before the pandemic."

"This means competition for rentals will remain strong and rents will continue to increase."

Low vacancy rates drive prices up

The recent PropTrack Rental Affordability Report showed that rental affordability had hit its worst level in 17 years.

The national median rent increased by 3.4% to $600 per week in the March quarter, marking a 9.1% rise compared to the previous year.

With fewer rentals available, rising prices have made renting increasingly unaffordable. Picture: Getty

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Rentals have become unaffordable for many tenants across the country, but those in New South Wales, Tasmania and Queensland would be finding it particularly difficult to find a home within their means.

In contrast, tenants in Victoria have access to the most affordable rentals nationally.

“The deterioration in affordability has been driven by the significant increase in rents since the pandemic, which wages have not kept pace with,” said PropTrack senior economist Angus Moore.

What can tenants do to stay housed?

With many tenants nervous about their prospects of not only finding a property, but one they can afford to live in, it’s an important time for them to know what help is available.

A new search filter on realestate.com.au is now available to help tenants find affordable rental properties advertised under government and private programs without the need of searching through all advertised rental listings on the site.

The affordable housing search filter allows renters to search for listings that fall under four main schemes: the National Rental Affordability Scheme, state schemes Homes Victoria Affordable (VIC) and Housing SEPP (NSW), as well as the Essential Worker Housing Program, which is a private partner.

This follows the launch of an accessibility search filter last month, which allows both buyers and renters to find properties with accessible features.

A new rental affordability filter has made it easier to find rental listings that fall under government and private rental affordability programs. Picture: Getty

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REA Group general manager - product, Jarrod Scott said he hoped the affordability filter will not only help tenants find affordable rentals, but assist agents in processing applications with ease.

“The filtered search provides more clarity around eligibility for these properties and will ultimately also support agents in receiving applicable enquiries and applications,” he said.

“We’re always looking for ways to improve the search and filter functionalities on realestate.com.au. These new updates ensure an inclusive experience for all Australians as we aim to be the place where everyone can find their next home with ease.”