Sydney renters are currently spending an additional $1,600 per year compared to last year, as the average weekly rent reaches $760, up 4.1% in 2025, with further increases expected in 2026.
Sydney maintains its position as Australia’s most expensive city for renting, with tenants paying $185 more per week than in Melbourne. Overall, Sydney residents spend $9,620 more per year than those living in Melbourne.
Although rental growth has slowed compared to previous years, high price levels mean that even small increases have a significant impact. Apartment rents rose by 7.1%, compared to 3.2% for houses.
The average weekly rent for houses and apartments reached $800 and $75,0, respectively. Anne Flaherty from the REA Group noted that rising demand from migrants combined with limited supply is pushing prices higher, stressing the need to increase the number of rental properties to curb the surge.
She also pointed to the increase in investment in rental properties as a positive step toward improving the situation. There is optimism about the home guarantee program, which could reduce rental demand as some tenants transition into homeownership.
In regional areas of New South Wales, rents rose by 5.53% year-on-year to reach $600 per week, matching Adelaide and exceeding Melbourne and Hobart. This increase has been driven by population movement from Sydney due to affordability issues, leading to intense competition for available properties.
