The National Australia Bank said the option, in which people buy a property and rent it out in order to pay off the mortgage, was becoming more common.

But then they have to find a rental to live in themselves.

According to the Real Estate Institute of Queensland’s latest data, the state-wide vacancy rate in the December quarter was 0.8 per cent. This was a slight increase on 0.6 per cent in the September quarter.

The REIQ said it expected 2023 to continue to show rental pressures in the market because of population growth pressures as immigration and international students return.

However, some areas were showing a loosening of the rental market. Gladstone, Makay, Townsville, and Burdekin all showed vacancy rates above 1 per cent while the Redlands bay islands had considerably weak 6 per cent.

Brisbane’s vacancy rate was 1 per cent

The NAB said about 40 per cent of young Australians were also considering buying a property with someone who was not their romantic partner, according to the NAB research.

The bank said people were becoming more creative and considering more options in the search for a home.

“Outside of dropping their price range, buying with another person tops the list of compromises Aussies aged between 18 and 29 are prepared to make to get into the market,” NAB said.

“Almost a third are willing to buy and rent the property initially, while 20 per cent say they’re up for moving into a share house.”

The most common compromise was price but a third of people were willing to trade off the size of land, garden or outdoor space while 28 per cent were willing to give up on their preferred location. About a third of 18-29 year olds were willing to rentvest, but the percentage dropped as people aged.

About a quarter were also prepared to consider an apartment rather than a house

One in 10 were not willing to budge at all.

NAB executive of home ownership Andy Kerr said rentvesting was a trend that was creeping up in popularity. The scheme involves renting a property that suited your lifestyle while buying an investment property that suited your budget.

Suncorp has previously said this was becoming popular in inner-city areas, but warned there were a lot of pros and cons to consider.

Kerr said people were not being put off by high prices.

“Buyers are just thinking outside the box to make it happen,” he said.

“Younger Australians aren’t letting meeting a partner or getting married later in life hold them back from owning a home now.

“People are definitely looking at their options and casting the net wider when thinking about they could buy with.”