New data from PropTrack showed positive signs for Australia’s rental market, with the pace of rent price increases slowing and more homes becoming available.
In the September quarter, median weekly rents across the country rose by 1.7%, bringing the national average to $610 per week.
Capital city rents increased by 1.6%, now sitting at $640 per week, while regional rents saw a slightly larger rise of 1.9%, reaching $540 per week.
Despite the overall increase, this represents the slowest annual rental growth since September 2021.
“While the cost of renting remains higher than a year ago, the pace of price growth has slowed,” said Cameron Kusher (pictured above), director of economic research at PropTrack.
Nationally, rents have climbed 7% year-on-year, marking a significant deceleration in growth.
Capital city rents grew 6.8%, the slowest pace since December 2021, while regional rents rose 8%.
Notably, unit rents experienced a 9.1% rise over the year, outpacing house rents, which increased by 6.9%.
However, the gap between unit and house rents is narrowing, with only a $20 difference, PropTrack reported.
While rental prices continue to rise, more rental stock has entered the market, leading to an easing of pressures on the rental market.
“The cost of renting has outpaced inflation in recent years, impacting demand as more rental properties become available,” Kusher said.
Despite this, supply remains limited, and further improvements in market balance are expected in the coming months.
Sydney remains Australia’s priciest city for renters, with median advertised rents remaining steady at $730 per week, up 5.8% from last year.
In contrast, Melbourne’s median rent, at $570 per week, is more affordable than all other capital cities except Hobart, making it an appealing option for renters seeking relief from higher costs.
Although rental supply remains tight, the rental market is starting to show signs of moderation. More homes are available for rent, and the rapid rise in rental costs is slowing.
Kusher predicts more balanced conditions in the near future, which should ease some of the pressure for renters across the country.
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