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Rental prices continue to be on the up and up throughout all of Australia. While the rapid rate of growth may have slowed in recent weeks, prices are still increasing nationwide — just at a slower pace. Frustrating to renters no doubt, but it's also created new opportunities for brokers in the form of first-time homebuyers.
"People are sick of rent increases, so a lot of people are inquiring to see if they can afford to buy something," Luke Ashby, a mortgage broker at Emerge Finance, told Australian Broker. In fact, in the last 12 months he's said he's had more inquiries from renters looking to buy for the first time than ever before.
"Especially among renters who have been renting for a long time," Ashby said. "Maybe someone who has been renting for 25 years and they come to me and say their landlord is selling the property and ask, what can we do? Or they're over 40 and not sure if the banks will lend to them. The rent increases are pushing more people to say, 'let's explore.'"
Rent prices grew 4.8% throughout the country in 2024, according to CoreLogic data. In 2025, the median rental price tag for a unit in one of Australia's capital cities is $630 a week, according to a report by online property marketplace Domain. That's a marked contrast from 2022, when the median weekly rent for units nationwide was $490. And depending on what city the tenant is in, the prices fluctuate. In Sydney, the median weekly rent per unit jumps to $720.
Adding to the problem is the lack of available units. While a vacancy rate around 3% is ideal for both landlords and tenants, suggesting a balanced market, a vacancy rate less than 2% normally indicates higher rental demand, and a harder time finding housing.
In December, Australia's national residential vacancy rate was 1.4%, according to SQM Research, illustrating the difficulties attached to finding a place to live. Ten years earlier, the Real Estate Institute of Australia published a report, saying the vacancy rate across the nation's eight capital cities was 2.8%.
"Entering the rental market is very competitive. And because it's so competitive, it's unlikely that you can find short-term rental opportunities," said Aaron Bassin, co-founder and chief executive officer of Bridgit. The non-bank lender specializes in offering bridge loans for transitory periods.
"You probably have to rent for at least 12 months," Bassin said. "And then the market can change in 12 months. And then you have to pay for rent for 12 months. It just creates a lot of inconvenience and uncertainty."
These headwinds are likely to continue, at least in the near term. Earlier this month, JP Morgan economist Tom Kennedy wrote in a note that "the combination of strong population growth and weak residential construction activity suggests Australia's dwelling supply challenges are likely to persist, which in our view will continue to exert upward pressure on residential rents."
Buying a new home is without question a daunting task, especially for the first time. But this can also create opportunities for brokers to attract new clients, Ashby said.
The Queensland-based finance specialist said he often works with referral partners and real estate agents to help find renters who are thinking of buying.
Ashby also makes use of social media, including Instagram and TikTok, to help market his brand and create educational videos for prospective borrowers. On Facebook, he has a first-time homebuyer group for people in Queensland.
"It serves as an educational hub for first-time homebuyers," Ashby said. "I try to provide valuable content. Like, how to make an offer, or answer questions on serviceability, or what are things to look for? Or what are banks looking for? It's tips and help to coach them for when they're ready to buy and it helps buyers with their expectations.
"A lot of people are hesitant to have a conversation with a broker," he said. "Maybe they think it will cost them something. Or, maybe they're embarrassed about their financial situation. I try to make it as easy as possible for them to approach me."
