Australia’s average rent has reached a new record high, with data pointing to sharp disparities across the market. In some areas, rents continue to climb, while others are struggling to attract tenants.
A report by PropTrack said the national median weekly rent rose 1.6% in the last quarter to $650, equivalent to an annual increase of 4.8%. In regional areas, rents grew by 7.3% to reach $590 per week, while Sydney remains the most expensive city at $760.
Hobart recorded the strongest rental growth among the capitals, followed by Darwin and Perth. Despite ongoing pressure on rents due to population growth and a shortage of new housing, REA’s Anne Flaherty noted that tight local markets are pushing up the national average, particularly in Perth and Brisbane, which have low vacancy rates.
The gap between houses and apartments is becoming more pronounced, with apartment rents rising 6.7% over the year compared with 3.2% for houses, reflecting changing tenant behavior as more renters seek affordable options, especially in city centers.
However, other areas are seeing higher vacancy rates, forcing landlords to cut rents or offer incentives to lease their properties, particularly in suburban districts with a high concentration of houses.
Mark Degotardi of Community Housing Australia said the crisis lies in providing suitable and affordable housing, adding that increasing supply alone is not enough to reduce rents. The issue is what is being built and where, especially given the major challenges in achieving viable development in areas with the fastest rental growth.
