Air-conditioning now renters' top priority, Domain finds

With summer approaching, renters are making their preferences clear: air-conditioning is no longer a luxury but a must-have. 

Domain analysis revealed it ranked in the top five most-searched rental keywords in nearly every major city this year. In Sydney and Adelaide, it topped the list, while in Brisbane and Perth it came second.

In Adelaide, demand surged 751%, rising from 17th place in 2024 to the top spot in 2025. Yet only 35% of listings include air-conditioning. This gap highlights how many investors are failing to match tenant expectations, said Nicola Powell (pictured), Domain’s chief of research and economics.

“Renters are clearly signalling what they want and need – and as temperatures rise, air-conditioning is no longer a luxury, it’s a necessity,” Powell said in Domain’s latest analysis.

The renewed focus on livability comes as national vacancy rates remain tight. SQM Research reported Sydney and Hobart recorded the sharpest tightening in August, with Sydney’s vacancy rate dropping to 1.4% – its lowest level in more than a year. National advertised rents rose 0.4% in August, with units now generally outperforming houses across most capitals.

Comfort seen as essential

Powell warned landlords risk overlooking livability factors that can determine leasing decisions. 

“Some landlords actually risk overlooking the comfort of a unit, an apartment or a house, but actually for a tenant what you tend to find is these comfort additions are really important in deciding which lease to actually take,” she said.

The Victorian government has already acted, requiring all new leases from March 2027 to include compliant cooling. 

Tenants Victoria’s Damien Patterson said this shift reflects a broader recognition. 

“When a home is sweltering through the summer, it can impact your sleep, which can impact your health – it goes to your entire quality of life,” Patterson told Domain.

Lifestyle and location searches grow

In Sydney, air-conditioning was the most-searched term two years in a row. 

“Tenants are looking for homes that can have positive impacts on their quality of life and their lifestyle,” said Chantelle Collin, head of property management at BresicWhitney.

Beyond cooling, “university” also featured prominently in rental searches, topping lists in Melbourne and Canberra. Powell said this highlights demand near education hubs. 

“It really reflects renters clustering around those educational hubs, and if you’re going to university, a larger portion is going to be renting,” the Domain leader said.

Patterson added this trend underscores the importance of affordability. 

“It really shows how important it is to make sure that there are affordable options right across … the country because often, university students are on low incomes,” he said.

Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.