Australia’s rental market has stepped back from the breakneck increases of 2022–23, but conditions remain tough for tenants, according to fresh Ray White analysis.
Ray White chief economist Nerida Conisbee (pictured) notes that “National weekly house rents are now $650 and unit rents $625”, with annual growth of 4.8% for houses and 4.2% for units.
The figures come as renters continue to feel the strain: separate industry research cited by the Property Council shows almost 30% of Australians still rent rather than own, and a recent Youi survey found 46% of Australians don’t believe they’ll ever own a home, underscoring how persistent rental pressure is for many households.
The biggest shift is in relative affordability. Conisbee notes that “This shift in relative affordability is notable” as lifestyle and smaller capitals overtake the traditional leaders.
The Gold Coast is now among the most expensive house markets in the country, with median weekly rents at $950, above Sydney at $810 and far ahead of Melbourne at $575.
Perth houses are achieving around $700 per week, outpacing Adelaide at $625 and Brisbane at $675. In the unit market, Perth and the Gold Coast sit at roughly $650 and $770 respectively, while Sydney remains elevated at $730.
Melbourne, at about $580 for both houses and units, is comparatively affordable, which may appeal to price‑sensitive renters and first‑home buyers considering rentvesting strategies.
That affordability gap doesn’t necessarily translate into faster ownership, though. The Property Council warns that, without “radical supply boosts”, the median age of first-home buyers – already around 34 nationally – could climb towards 40 in Sydney and Melbourne, keeping more potential buyers in the rental pool for longer.
For brokers modelling yields and rental assumptions, it is also important to look beyond city‑wide averages.
Beneath the softer national figures, rental acceleration has become concentrated. Several Adelaide SA4 regions are still recording double‑digit unit rent increases, Perth’s outer‑metro house markets are posting firm gains, and parts of regional Queensland continue to outpace the national trend.
Inner‑city unit markets in Melbourne, Sydney and Brisbane have also firmed again as migration and student demand recover, with vacancy rates staying tight.
In many markets, vacancy is sitting below 2%, signalling robust rental demand, price resilience, and long‑term occupancy stability for landlords.
Melbourne currently shows the weakest annual rental growth among the major capitals, with house rents slightly lower over the year. Yet since 2020, Melbourne is the only large city where rent growth has outstripped price growth, suggesting rental pressure has been absorbed more through tenants’ incomes than capital gains.
Conisbee characterises the shift as a cooling, not a collapse.
“The surge phase may be behind us, but rents are not retreating nationally,” the Ray White economist said.
For brokers, that means investor demand is likely to remain underpinned by solid rental conditions, even as clients juggle borrowing capacity constraints and higher mortgage rates.
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