Top 10 Regions With the Highest Number of Unoccupied Homes Revealed

This article explores the top 10 regions with the highest number of unoccupied homes, highlighting areas where housing vacancies are most prevalent. It examines the reasons behind these empty properties, such as migration trends, economic factors, and real estate market conditions. The piece also discusses how these unoccupied dwellings impact local economies, housing demand, and urban development, offering insights into shifting population patterns and the challenges faced by property markets in these regions.

A new study has uncovered that around 10.1% of homes nationwide are unoccupied, but in some regional areas, that figure skyrockets past 60%.Queensland’s picturesque Moreton Island tops the list with a staggering 66% of dwellings sitting empty, according to Ray White’s head of research, Vanessa Rader.

“These extraordinary statistics highlight how Australia’s holiday home culture is heavily concentrated in certain regions and challenge long-held beliefs about what drives property investment returns,” Rader explained. The analysis used unoccupied housing figures as an indicator of holiday home density, revealing that regional property markets often follow their own unique economic logic, distinct from traditional city-based real estate trends.

The study identified the ten Australian locations with the highest vacancy rates across Queensland, Tasmania, Victoria, New South Wales, and Western Australia. “Moreton Island stands out with 66% of homes unoccupied, yet it’s far from a weak market,” Rader added. “Property values here average $1.25 million, with 11.5% annual growth and an astonishing 140.9% rise over the past decade.”

She noted that the island’s remoteness actually boosts its exclusivity. “Even though access requires a four-wheel drive and ferry transport, this isolation enhances its appeal, making traditional valuation methods inadequate.” However, she cautioned that the logistical challenges come at a cost. “Transporting building materials and tradespeople by ferry inflates maintenance expenses, and insurance premiums can be 30–40% higher than on the mainland.”

Tasmania contributed two standout regions, Central Highlands and Glamorgan-Spring Bay, showcasing the island’s growing tourism economy. “Central Highlands shows a 58% vacancy rate with a remarkable 157% price increase over ten years, while Glamorgan-Spring Bay’s values rose 132.4% despite a slight recent decline,” Rader noted.

Victoria dominated the premium holiday home segment, hosting four of the top ten unoccupied areas. “Lorne-Anglesea commands a $1.57 million median price but modest 3.8% annual growth, while Point Nepean follows closely with similar trends,” the report revealed. “These figures suggest that even luxury markets are hitting affordability ceilings.” Phillip Island and Otway also made the list, each with around 50% of homes vacant.

South Australia’s Yorke Peninsula-South ranked fifth with 52% unoccupied homes, while NSW’s Callala Bay-Currarong followed with 48%, and Western Australia’s Gingin-Dandargan rounded out the list at 45%.

Rader highlighted the environmental challenges tied to these high-vacancy coastal zones. “Sea air corrosion, bushfire exposure, and rising insurance costs pose serious risks,” she said. “As climate change intensifies, sea level rise and more extreme weather could make these locations even more vulnerable.”

She added that such areas often have infrastructure designed for temporary populations rather than full-time residents, complicating long-term planning. Regulatory changes have also begun reshaping investor behavior. “Victoria’s 7.5% levy on short-stay rentals and various council surcharges on Airbnb properties are curbing rental profits,” Rader explained. “These policies aim to improve housing affordability but limit returns for holiday homeowners.”

Tax regulations add another layer of complexity, particularly for properties that serve both as rentals and private getaways. In terms of performance, Rader noted that high vacancy doesn’t always equal poor returns. “Moreton Island proves that exclusivity can drive exceptional value, even with minimal rental activity,” she said. “Meanwhile, established markets like Lorne-Anglesea show that strong tourism appeal doesn’t guarantee ongoing growth.”

The study ultimately identifies three main market types: established luxury destinations with steady growth, rising hotspots with strong upside, and affordable regional areas offering balanced investment potential. “To succeed, investors must understand the unique costs, risks, and dynamics that set these markets apart from conventional housing investments,” Rader concluded.

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Source: realestate‍