Record rents are compounding rental stress for first home buyer clients. The Finance Brokers Association of Australia (FBAA) says the federal government must now admit its investor tax changes have backfired.
National median rents hit a record $670 per week in June 2026. That is a 3.1% rise over the quarter. Year-on-year, rents are up 6.4% according to realestate.com.au Market Insight data powered by PropTrack.
The capital city median hit $690 per week, $10 more than the previous quarter.
FBAA chief executive Leo Gagic said the figures confirm what the association predicted before the May 2026 Federal Budget.
‘We warned that discouraging investors would increase costs for Australians who rent, and we are now seeing this happen exactly as predicted,’ Gagic said in a media release. ‘Every additional dollar spent on rent is a dollar that cannot go towards buying a home.’
Rental stress is now a direct obstacle for clients trying to save a deposit. Renters across the capitals are paying $40 more per week than they were a year ago. At that point, growth had largely flattened across most markets.
Perth recorded the steepest annual growth at 10.3%. Hobart followed at 9.1% and Darwin at 7.7%. Of the capitals, Melbourne and Perth posted the strongest quarterly gains at 3.5% each.
Sydney is the priciest capital for renters, with dwellings sitting at a median of $800 per week. Melbourne and Hobart remain the most affordable capitals.
Rents across regional areas were flat quarter-on-quarter but up 5.3% on the same time last year. PropTrack economist Luc Redman said this suggests the pace of acceleration outside the cities has eased somewhat.
Houses outpaced units over the quarter. Capital city house rents rose 2.9%, while units in regional areas gained 1.7%.
Redman noted that the May 2026 Federal Budget fell in the middle of the quarter. Its changes to negative gearing and capital gains tax settings for property investors are yet to fully flow through.
"The full impact on the rental market is yet to be seen," Redman said. "While the vacancy rate has edged higher, the expected decrease in investor demand due to the budget's tax changes could slow the pace of new supply, putting further pressure on rents."
The FBAA is now calling directly on the prime minister and treasurer to act.
"The changes that are decreasing the supply of rental availability while demand is increasing are hurting the very people they were supposed to help," Gagic said. He named Australians on lower incomes, single parents, and aspiring first home buyers.
"How does making it harder for Australians to save a deposit improve housing affordability?"
That question matters to brokers in practical terms. Clients paying record rents have less to save, longer timelines to purchase, and greater financial stress entering the lending process.
Earlier modelling warned that tightening negative gearing and CGT concessions could reduce new housing supply. That scenario is now playing out in the data.
Brokers managing first home buyers facing deposit and serviceability hurdles should factor rental stress into every borrowing timeline conversation.
Access the full data on realestate.com.au’s July 2026 Market Insight report
