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Drop in rental households not a risk for rental growth

The number of households in the rental sector has seen year-on-year declines in each of the last four quarters. But an equivalent supply response, with some homes shifting to the homeowner sector and a fall in the share of homes started for rent, has kept rental vacancy rates low. Accordingly, the fall in the number of rental households is not a risk for rental growth, which is set to slow only slightly this year.

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