2024 and Investors are Back in the Market.

As a result of Australian Bureau of Statistics figures, lending to investors has increased by almost a fifth in the past year, suggesting investors are making a comeback. According to the latest data, in January 2024, investors borrowed $9.21 billion, while owner-occupiers borrowed $15.91 billion. Over the past year, investors’ loans increased by 18.5%, while owner-occupier loans only grew by 3.4%.

As a professor of economics at Curtin University, Rachel ViforJ explains, the lack of supply and rising rental demand are once again making investment attractive. Rents would normally rise if there is a huge demand relative to supply, so investors would be motivated to invest in rental housing, she says.

While the national vacancy rate sits at just 1% and rates continue to rise, CoreLogic figures show Australian property prices have recorded 14 months of constant price growth.

According to CoreLogic research director Tim Lawless, increasing investor numbers could actually be beneficial to the current housing crisis.

“More investment in the market is a positive thing. It should introduce more rental stock to the market,” he says.