The Dwindling Number of Property Investors: What it Means if You Want to Invest in 2025

It’s no secret that there’s a growing housing crisis in Australia…

With high rent prices, a huge amount of competition in the search for affordable housing and increasingly limited availability for people to even work with.

But how did this all happen?

Well, data from the ATO’s financial review shows that there are less and less investors entering the property market as the years go on, and this is one of the key factors driving this crisis.

Because private property investors have always played a really big role in Australia’s housing market. They provide much-needed rental properties, and are really powerful in helping maintain the balance between supply and demand, especially in areas where government initiatives just can’t keep up. But with fewer investors in the market, the strain on renters and the overall market is very, very real. It’s becoming much harder for many Australians to access stable, affordable housing – and this is a problem.

However, despite these huge impacts on the property market in general and everyday Australians seeking housing, it has big implications for investors like yourself too – and they’re not all bad. So let’s break them down.

• Potentially less competition

  For investors who are looking to enter the property market in 2025, having less competition could actually be a good thing. Fewer people in the market means much less pressure, and more opportunities to find the right strategically sound property for long term investment.

• Increased demand for rental properties

  In its current state, demand is far outweighing supply within the market. More Australians are renting or looking to rent than ever before, and as this demand keeps rising, there’s a good chance your investment will be hot property.

  There’s huge potential to capitalise on this by focusing on high-demand locations and properties that would appeal particularly to tenants for a variety of reasons. With this imbalance of supply vs demand, it’s likely that rental prices will increase and you’ll be able to secure yourself strong rental returns from your investment too.

• Potential for growth if you play the long game

  Sure, the crisis does present some challenges in the short term there’s no denying, but Australia’s housing market has historically proven to be pretty resilient over the long term.

  Even as investment numbers dwindle, the demand for housing continues to rise, and investments that you make now are likely to appreciate over time as the shortage of rental properties deepens. Basically, what we’re saying is, a strategic investment now could pay off significantly in the coming years.

So, what does this all mean if you’re thinking about investing Aussie property in 2025?

Well, with fewer investors and a growing shortage of rental properties, it’s more important than ever to adopt a strategic approach.

And what does this look like you may ask? Here are some tips:

• Focus on high-demand areas Look for areas where demand for rentals is strong, and likely to grow. Locations near major employment hubs, with great connectivity via public transport and up-and-coming suburbs are some things to look out for.

• Think long-term There’s no denying we all love a short-term gain, but a lot of the time, you need to be investing with the long-term gains in mind. Even as the market fluctuates and things seem uncertain, sticking it out with the confidence that you’ve invested smartly will definitely pay off over time.

• Ask for help Work with a property expert who understands the current market and can help you find properties that are positioned for growth. There’s no need to do it all on your own, and asking for help can give you a big edge over your competition.

• Keep your eyes open for opportunity With fewer investors, some markets may be undervalued or overlooked. If you know how to find these hidden gems, or you’re working with a team who do, they could provide some really strong capital growth and rental returns.

So, while the dwindling number of property investors presents its challenges, it also creates some really unique opportunities for those of you who are willing to act now and act strategically.
With rental demand rising and competition lower, now could truly be the perfect time to enter the market and secure an investment property that will set you up for success far beyond 2025.

At Propell, we’re here to guide you through the entire process and help you make smart, informed investment decisions.

Contact Us to chat more about how we can help, so we can give you the support you need to succeed in the changing market.