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Australians face record high rents as agents see 'inquiries flooding in'

Published July 8, 2026 at 6:49 PM UTC

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Australians are confronting unprecedented rental prices across all capital cities, with vacancy rates at historic lows and demand surging. Data from property website Domain reveals a significant acceleration in rental growth, particularly in Sydney, which experienced its largest quarterly rent increase in four years. Combined capital city house rents rose by $20 over the June quarter, marking the strongest annual growth in nearly two years. Unit rents also saw a modest increase of $5, indicating a growing divergence between house and unit markets. Sydney's house rents reached a record $850 per week, while Brisbane's rose to $700 per week. Darwin surpassed Perth as Australia's second most expensive rental market for houses and recorded the strongest annual rental growth. Domain's chief retail economist, Nicola Powell, attributes this trend to strong population growth, insufficient rental supply, and affordability challenges for tenants transitioning to homeownership. Real estate agent Tanja Cosic reports a surge in inquiries as soon as rental properties are listed, with many tenants opting to share accommodations to manage costs. Student Heath Clark, renting near his university in inner Sydney, finds it challenging to balance study, part-time work, and the high cost of living. The rental market is expected to remain tight in the coming months due to government policy changes, low supply, and interest rates affecting rental affordability. Separate figures from 's Market Insight report show that the national median weekly advertised rent grew by 3.1% over the June quarter, reaching a new high of $670. Annually, this represents a 6.4% increase, with renters paying an average of $12,480 more in June 2026 compared to five years ago. The national vacancy rate for both houses and units remains under 1%, indicating a severe shortage of available rental properties. Analysts suggest that high interest rates have deterred property investors, potentially leading to fewer choices for renters. Domain's Dr. Powell expresses concern about the future of new investment in Australia's rental market and its impact on housing availability and rental conditions.