Australia’s rental prices have surged over the past 12 months, with the nation’s median rental price now surpassing $700.
Rental price surge: Capital city rents up 6 per cent in past year - see the most expensive suburbs in your city Rental prices have surged 6 per cent across Australia’s capital cities in the past 12 months.
See which suburbs in your city are the most expensive. Australia’s rental prices have surged over the past 12 months, with the nation’s median rental price now surpassing $700. Rental prices increased 1.6 per cent in the June quarter, bringing the annual growth rate to 5.9 per cent, according to Cotality’s Quarterly Rental Review. Australia’s capital cities experienced slightly higher increases of 1.7 per cent for the June quarter and 6 per cent annually.
The cities with the largest rental increase over the past year have been Darwin, which saw a 10.1 per cent hike, followed by Hobart with 8.6 per cent, and Perth with 7.8 per cent. Brisbane residents experienced a 6.4 per cent hike in rents, with Sydney’s rents increasing 5.9 per cent, Melbourne’s 4.9 per cent, Adelaide’s 4.8 per cent, and Canberra’s 3.2 per cent.
The harbour city’s most expensive suburb to rent in is Vaucluse and the most affordable is Caramar . Perth’s median price of $784 makes it the second most expensive city, with Brisbane being third at $734. But both cities had a smaller gap between their most expensive and least expensive suburbs. In Perth, the median rent for Dalkeith was $1,660 while in Shoalwater it was $470.
For Brisbane, the most expensive was Bulimba at $1206, while the cheapest was Raceview at $443. The Victorian capital’s most expensive suburb was Brighton at $1,555, with the cheapest being Melton South at $376. Adelaide’s median rental price was $662, with the most expensive suburb being Hyde Park at $1,018 and the cheapest Salisbury at $477.
Cotality Australia’s Head of Research Gerard Burg said the rapid acceleration of rents had exceeded the growth in household incomes, and was driving severe rental affordability constraints.
"We are seeing a profound shift in affordability across the market. In March this year, the typical household was allocating roughly one-third of their gross income to rent, compared to around 27 per cent just five years ago," Mr Burg said.
"While quarterly rental growth has eased slightly, the underlying supply deficit means conditions remain incredibly challenging for tenants. “We are approaching a threshold where rental affordability acts as an increasing constraint on further growth, particularly in regional areas where lower median incomes mean households are spending upwards of 35 per cent of their income on rent.
" The Cotality report shows the primary driver of the crisis is a “severe lack of available stock”, with the national dwelling vacancy rate sitting at 1.6 per cent. "With vacancy rates compressed so tightly, tenants are left with very little leverage," Mr Burg said. "Capital city rents rose faster than regional markets this quarter, reversing a trend of regional outperformance seen between late 2024 and early 2026, largely because regional markets are hitting severe affordability ceilings. "
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