Australia’s rental market tightened further in March, with new data pointing to critically low vacancy levels and rising advertised rents across most capital cities.
SQM Research reports that the national residential vacancy rate fell to 1% in March, down from 1.1% in February, with just 31,732 dwellings available for lease.
Managing director Louis Christopher (pictured) said the result “highlights just how tight Australia’s rental market has become”, with several capitals now well below already constrained levels.
Perth and Hobart recorded vacancy rates of 0.5% and 0.4% respectively, while Darwin dropped to 0.4%, leaving very few properties on the market at any given time. Sydney and Canberra both sat at 1.1%, and Melbourne eased to 1.4%, remaining more balanced but still tightening compared to earlier in the cycle. Brisbane held at 0.8%, maintaining one of the lowest vacancy readings among the larger capitals.
Advertised rents continued to push higher into April. SQM’s national combined rent average rose 0.4% over the past 30 days and is now 5.9% higher than a year ago, at $692.45 per week. In the capital cities, the average has increased to $791.44 per week, supported by gains across both houses and units.
House rents were broadly flat over the month but remain around 6% higher year-on-year, while unit rents increased 1.4% in the month and 5.6% over the year, signalling persistent demand for medium‑density stock. Sydney’s combined rents are up 7.4% annually, Perth 6.9%, and Brisbane 6.8%, with Hobart leading annual growth at 12.5%.
Christopher noted that “while some markets are showing brief pauses in rental growth, the overall trend remains upward due to the ongoing imbalance between supply and demand.”
He warned that “without a significant increase in new housing supply and/or a stabilisation of population growth rates, it is likely that rental pressures will remain elevated throughout 2026.”Bottom of Form
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