Rents have fallen in one major city while growth has drastically slowed elsewhere as cost of living pressures have taken the heat out of the market.<\/p>\n
New figures from property analytics firm Cotality show rents across the country lifted 0.5 per cent in the three months to September.<\/p>\n
This is a significant slowdown from the 1.6 per cent rent increase in the June quarter and the 2.1 per cent rise in the three months to March.<\/p>\n
Sydney was the only major city to report a decrease throughout the quarter, with rents sliding 0.4 per cent.<\/p>\n
While Canberra recorded a 0.1 per cent increase during the September quarter, rents in the nation\u2019s capital were down 0.3 per cent during the month.<\/p>\n
Darwin recorded the strongest national growth at 5.8 per cent as Adelaide rents lifted 1.7 per cent and Brisbane prices jumped 1.3 per cent for the quarter.<\/p>\n
This comes as the rental vacancy rate has lifted from 1.7 per cent to 2.1 per cent \u2013 its highest level since January 2025.<\/p>\n
Cotality\u2019s research director Tim Lawless said economic pressures were weighing on rental demand, pushing Australians into more affordable accommodation.<\/p>\n
\u201cRental growth was strongest through the pandemic when average household sizes fell sharply as people sought additional space, then experienced a second wind as international borders reopened and rental demand increased without a commensurate uplift in rental supply,\u201d Mr Lawless said.<\/p>\n
\u201cThe consequence is that renters are reaching an affordability ceiling. Our June affordability data showed rental households were dedicating about 34 per cent of their pre-tax income towards rent, the highest level on record.<\/p>\n
\u201cWith rental affordability so stretched and broader cost-of-living pressures, rental demand is likely to be restructuring as people form larger households, stay in the family home for longer or look further afield for more affordable accommodation.\u201d<\/p>\n
Shifts in the rental market come as inflation remains elevated at four per cent.<\/p>\n
It has persistently sat outside of the Reserve Bank of Australia\u2019s 2-3 per cent target band for the past five years, creating mounting price pressures that eat into household savings.<\/p>\n
While rents in Sydney fell slightly throughout the quarter, the city continues to have the highest median rent of $843 per week.<\/p>\n
The NSW capital is home to the 29 most expensive suburbs for rent in Australia.<\/p>\n
Perth follows with the nation\u2019s second highest rents at $798 per week while Darwin is third at $774 and the median rent in Brisbane is $746.<\/p>\n
Other figures from realestate.com.au showed rents lifted 1.5 per cent during the September quarter while Sydney prices remained flat.<\/p>\n
Darwin continued to record the steepest rent increase, lifting 5.7 per cent, while Melbourne and Adelaide each saw rents lift 0.8 per cent.<\/p>\n
REA senior economic analyst Megan Lieu said there was a mismatch between rents in the capital cities compared to the regions.<\/p>\n
\u201cAnnual growth in regional rents is softening, while the reverse is happening in capital cities,\u201d Ms Lieu said.<\/p>\n
\u201cDespite vacancies being slightly lower in regional areas, the improvement in available rentals has been larger at 0.4ppt compared to 0.2ppt in our capitals, which may be influencing price movements.\u201d<\/p>\n
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