The Australian Bureau of Statistics (ABS) has released new insights into the rental market based on data from around 480,000 properties used in the Consumer Price Index (CPI).
The analysis highlights shifting rental inflation trends, turnover rates, and differences between new and existing tenancies.
Since 2021, median rents have climbed in every state and territory, peaking in late 2024 before easing slightly in early 2025. Western Australia recorded the largest growth over six years – rising 75% from $350 to $613 per week. New South Wales still commands the highest rents, increasing from $480 to $650 per week since 2019.
Tasmania consistently recorded the lowest median rents over the same period, at $430 per week in April.
This aligns with external data from SQM Research, which reported Australia’s national rental vacancy rate held firm at 1.2% in May – down from 1.3% in April – indicating that supply remains tight despite a slight annual increase in available rentals. Total vacancies rose to 37,879, up from 35,641 in May 2024, underscoring continued demand pressure in the market.
Despite recent market pressures, rental turnover has remained stable. Around 2–3% of properties change tenants each month, with seasonal spikes at the start of calendar and financial years.
This turnover helps explain the divergence between advertised rent increases and actual rent changes measured in the CPI.
Capital city rents rose sharply from mid-2021 and peaked at 8.5% annual inflation in December 2023. As of April, rental inflation remains high at 5.5% but has moderated, particularly in inner-city areas less than 12.5km from the CBD.
In contrast, rental inflation in regional areas grew steadily until 2023 but is now slowing at a more gradual pace. Regional markets 75-100km from the CBD saw the sharpest moderation after the strongest growth.
Interestingly, cumulative rent increases since 2018 are still greater in regional areas than in capital cities.
Sydney’s inner suburbs now lead rental growth, surpassing outer suburbs. But Melbourne’s inner-city rental recovery remains muted.
Rent increases in Melbourne's inner suburbs remain below those seen in areas further from the CBD, largely due to the lingering impact of prolonged lockdowns and higher vacancy rates during the pandemic.
Between mid-2022 and early 2024, nearly all properties with a new tenant—up to 94% at the peak – experienced rent hikes. As of April 2025, this has eased to 83%.
For existing tenants, rent increases peaked at 82% in November 2023 and declined to 75% by April 2025.
The proportion of properties with no rent change or even decreases has grown, signalling broader market moderation.
From 2022 through early 2024, steep rent increases – more than 10% – became common. But that trend is reversing.
By April:
For existing tenants:
This trend reflects a broader stabilisation in rental pricing conditions.
