Australian rental increases the highest on record in capital cities

By Maria Gil · · 2 min read
Fact Checked
Advertiser disclosure
regional properties next to a lake

Australian capital cities have experienced the strongest annual rental increase in history, says CoreLogic.

Aussie renters have been feeling the brunt of the cash rate increases as landlords pass on the rates to their tenants. All across the country renters have seen their rent increase by an average of $52 per week or $2,727 per year.

According to a new CoreLogic report , the national dwelling rental index increased by 0.8% to 2.8% over the last three months. And the combined rental increases in the capital cities went up 11.7% in the last year.

The uptick in rental prices can be attributed to several factors besides the cash rate hikes. Notably, the increase in immigration after two years of closed borders, which includes international students and new migrants, has created a massive supply and demand issue. Throw in the lack of new constructions and suddenly there is a scarcity of available and affordable places to rent.

The median rent in Australia May 2023 (Source: CoreLogic)

Median Rent
Perth$573
Darwin$588
Canberra$674
Brisbane$599
Sydney$699
Melbourne$526
Hobart$563
Adelaide$531
Combined Capital$594
Combined Regional$507
National$570

“The total supply of capital city rental listings was -20.9% below the level recorded this time last year and -39.8% below the five-year average,” the report notes.

“With the exception of Hobart and Canberra, vacancy rates across the capitals remain near record lows, and well below the 3% to 5% average rate considered indicative of a balanced rental market.”

CoreLogic says it's unlikely there’ll be a relief for renters for the short to medium term  as rental supply is expected to remain low due to the lack of new unit construction approvals.

For now, all renters can do is sit tight or consider buying their own property. If what you pay monthly for rent is equivalent to a mortgage repayment it might be better to put that money towards having your own home.

If you don’t know where to start, check out Mozo’s home loan guides or compare home loans below to see what you can afford.

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 11 September 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

Promoted

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $4,321
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Compare home loans