Rental vacancy rates are set to increase this year as more young people apply and receive the first home owners grant.
Another factor affecting vacancy rates is the worry over unemployment and paycuts, forcing many young Australian's to leave rental accommodation and back home with parents or other family.
National rental vacancy rates are predicted to rise in the next few weeks.
Ray White property management director Ben White, says rates were already rising in some markets from around 2.5% up to 5 per cent.
"Once vacancies rise, it's a matter of time before rents will soften," Mr White said.
Other young Australian's who are renting and loose their job may choose to leave rental accomodation and share with others or move back home with family.
Many will move out of rented accomodation where rents are high and move home in order to slash living expenses. Sharing with others is becoming increasingly common and in doing so, people can save considerable amount in rent each month.
Rents went up last year as the market for rentals tightened and many renters were priced out. However Australian Property Monitors says the market is slowly easing back in favour of renters.
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