Australia’s median advertised rent climbed to a record $675 a week in September 2026, but the pace of growth slowed, and vacancies rose to their highest level since early 2022, according to the latest realestate.com.au Rental Report.
National rents rose 1.5% over the September quarter, easing from a 2.3% increase in the June quarter. Annual growth reached 5.5%, adding about $1,820 a year to a typical rent. That was the strongest annual pace since October 2025, though still below late-2024 levels.
Sydney remains the most expensive capital at $800 a week, while Melbourne now matches Hobart as the cheapest, at $600. Across the capitals combined, the median advertised rent reached $700, up 1.4% for the quarter and 7.7% on a year earlier. Regional rents held at $600 over the quarter, with annual growth of 3.4%.
“Annual growth in regional rents is softening, while the reverse is happening in capital cities,” the report, authored by realestate.com.au senior economic analyst Megan Lieu (pictured), said.
Darwin posted the fastest annual growth of any capital, with rents up 13.8% to $740 a week.
Perth combines strong growth with the tightest conditions. Rents rose 8.7% over the year and the vacancy rate sits at just 0.9%.
“Rents grew the most in Perth over the past five years, with prices now 60% higher than September 2021,” the report said.
Hobart matched Perth’s 0.9% vacancy rate after annual rent growth of 9.1%, while Adelaide, at 1%, remains similarly tight.
Over the year, rental availability improved more in the regions than in the capitals, measured in percentage points (ppt). According to the report, “the improvement in available rentals has been larger at 0.4ppt compared to 0.2ppt in our capitals”. Regional vacancies now sit slightly below the capitals, at 1.4%.
Nationally, the vacancy rate rose from 1.3% in June to 1.5% in September. Although that is the highest reading in more than four years, the report noted that vacancies have moved within a narrow band of 1.1% to 1.4% since early 2022, suggesting conditions have not shifted materially.
While rents climb, property values are moving the other way. Dwelling values fell 1.1% nationally in September, a sixth straight monthly decline, leaving them 5.2% below their March peak, according to Cotality’s latest Home Value Index. Darwin and Perth, two of the strongest rental markets, also recorded the strongest annual value gains.
Investors are also absorbing higher borrowing costs after the Reserve Bank (RBA) lifted the cash rate 25 basis points to 4.6% on 29 September, its fourth increase this year, according to the RBA’s latest monetary policy decision.
Taken together, the rental and price data point to rental income growth continuing in several capitals, while flat regional rents and rising vacancies may temper expectations outside the cities.
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