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The relative cost of renting now varies sharply between cities. The Gold Coast is the most expensive capital city market for houses, with median weekly rents at $950 - higher than Sydney at $810 and well above Melbourne at $575. Perth houses now rent for $700 per week, ahead of Adelaide at $625 and Brisbane at $675. In units, Perth and the Gold Coast are both sitting at $650 and $770 respectively, while Sydney remains high at $730. Melbourne remains comparatively affordable at $580 for both houses and units.
This shift in relative affordability is notable. Historically, Sydney and Melbourne have dominated the upper end of the rental market. Today, lifestyle and smaller capital markets are competing at the top of the pricing spectrum.
While national growth has moderated, SA4 data show rental acceleration has not disappeared - it has become concentrated.
Several Adelaide SA4s continue to post strong rental growth, particularly in units, where annual increases remain in double digits in some areas. Perth’s outer-metro house markets are still recording firm annual gains, and parts of regional Queensland continue to exceed the national average. These are not marginal increases. In selected locations, rental growth remains materially stronger than capital city aggregates imply.
Inner-city unit markets are also stabilising at elevated levels. Parts of inner Melbourne, inner Sydney and Brisbane’s inner city have firmed again following the post-pandemic rebound in migration and student demand. Vacancy rates remain tight, suggesting rental demand has not meaningfully eased in higher-density markets.
Melbourne is currently recording the weakest annual rental growth of the major capitals, with house rents slightly lower over the past year. Yet the longer-term pattern remains significant.
Since 2020, Melbourne is the only major capital city where rental growth has outpaced price growth at a whole-of-city level. House prices have risen 32 per cent over that period, while rents have increased 37 per cent. In every other major capital, capital growth has exceeded rental growth.
This divergence suggests that while Melbourne’s price cycle has been comparatively subdued, rental pressure has accumulated over time. The moderation in capital growth has not translated into lower rents across the cycle. Instead, the burden of adjustment has been carried more through income than capital gains.
National rental growth has moved off its peak. Monthly increases have flattened and annual growth rates have eased. However, this is better described as a transition than a downturn.
Some markets are consolidating at high levels. Others remain firm. And in selected SA4 regions, rental growth continues to accelerate. Supply constraints remain structural, and population growth continues to underpin demand in both capital cities and regional centres. The surge phase may be behind us, but rents are not retreating nationally. Instead, Australia’s rental market is recalibrating, with sharp differences in cost and momentum between cities.