That said, it is still only about 1.5 per cent. This combination of outcomes created substantial financial pressures in this region after the housing boom ended in early 2004, as evidenced by the sharp rise in the arrears rate in the region over 2005 and 2006.
Having said that, the situation appears to have stabilised in the past year, most likely due to rising income levels. 4. The rental market  The rental market is currently very tight right around Australia: •  Vacancy rates are very low, at less than 1½ per cent on average across Australia (Chart 12); and  •  Rents are rising quickly.