The unprecedented flooding situation in Queensland and New South Wales could exacerbate the rental market across the country, which has reached its tightest point in 16 years and create more pressure on inflation. Australia’s national rental vacancy rates fell to a new 16-year low to 1.2 percent in February, down from 1.3 percent in January, SQM research revealed (pdf). “This situation now represents a significant rental crisis across the country,” Managing Director of SQM Research, Louis Christopher, said. Vacancy rates in Melbourne saw the biggest fall over February and is now down to 2.3 percent. In particular, the CBD saw rates plunge from four percent to 2.8 percent. Brisbane’s vacancy rate has fallen just below one percent, joining Perth, Adelaide, Canberra, Darwin, and Hobart. Meanwhile, Sydney is at 2.1 percent. The vacancy rate for a “healthy” market is typically considered to be around three percent. Rates below two percent indicate high …