Rising Rents and shrinking vacancies: the national picture
Renters across Australia are feeling the pressure as core rental costs climb to new highs. Cotality’s Quarterly Rental Review shows that the median weekly rent in capital cities has surged by 44 per cent over five years, reaching more than $700 per week for the first time. The national snapshot also reveals a stark reality: rental listings are now scarce, with only about 1.47 per cent of properties available for lease. That translates to roughly one in every 68 homes, well below the pre-COVID average and a driver of heightened competition in the market.
Why vacancies are at record lows
Limited supply sits at the heart of the rental squeeze. Cotality economist Kaytlin Ezzy notes that rental listings are tracking about 25 per cent below the five-year average for this time of year. In practical terms, renters face packed inspections and the tangible fear of missing out—often leading to bid wars for scarce properties. This environment pushes some applicants to compromise, accepting homes that may not meet all their needs in a bid to secure shelter.
Impact on renters’ behaviour and wellbeing
Industry voices say the pressure extends beyond the moment of finding a home. Tenants’ Union of NSW spokesperson Leo Patterson Ross emphasizes a chain reaction: disincentives to report repairs, fear of rent hikes, and anxiety over potential relocation. “With these large groups trying to inspect the same place, it’s very intimidating,” he notes. In practice, renters may delay essential maintenance requests or quietly accept worsening conditions to avoid attention from landlords and the risk of higher rents or eviction in a tight market.
Regional vs capital city dynamics
The Capital City rents have surged most dramatically, with Sydney recording a median weekly rent of $807, Melbourne $615, and Brisbane $696. Darwin posted the largest regional jump, with an 8 per cent rise to a median of $687, while Hobart remained comparatively more affordable at $584 per week. Regional rents are still elevated relative to five years ago, standing at a national median of about $591 per week, up nearly 6 per cent year on year.
Affordability and policy responses
Affordability remains a central concern for households renting long term. With roughly one in three Australian households renting, the rental market sits at the intersection of housing policy and macroeconomic dynamics. Amendments to ban no-cause evictions and to limit the frequency of increases have been implemented in various jurisdictions, but comprehensive nationwide protections are still evolving. The ACT has gone further, linking rent increase guidelines to the consumer price index, yet broader reforms are still needed to ensure fair deals across services such as water and energy, which already benefit from price regulation.
What could influence the outlook?
Prices for rents are a key component of the Consumer Price Index (CPI), and the recent fast pace of growth could influence inflation trajectories and central bank decisions on interest rates. Ezzy suggests that while some goods have cooled, rents are likely to remain a focal point for policymakers and renters alike. If supply remains constrained and demand holds steady, rent increases may persist, complicating efforts to cut interest rates or stimulate broader economic activity.
What renters can consider
Experts advise renters to plan ahead, compare listings across regions, and consider longer lease terms where possible to lock in stability. Landlords and agents are urged to improve communication about maintenance timelines to avoid compounding the stress of a tight market. For policymakers, the signals are clear: address housing supply gaps, strengthen rental protections where needed, and monitor CPI components that directly impact rent trends.
