One other reason for rental shortages are the regulations various state governments impose. For example, in ACT, rents can't go higher than CPI, in some states you can't refuse pets. Some council's are also wanting to levy higher rates on investment properties eg Cairns, so hardly an incentive. Sadly, I agree with you that the RBA doesn't have the cohones to keep rates high to crush inflation vs crushing the housing market.
One other reason for rental shortages are the regulations various state governments impose. For example, in ACT, rents can't go higher than CPI, in some states you can't refuse pets. Some council's are also wanting to levy higher rates on investment properties eg Cairns, so hardly an incentive. Sadly, I agree with you that the RBA doesn't have the cohones to keep rates high to crush inflation vs crushing the housing market.