Property markets move quickly — figures below are a point-in-time snapshot (Q2 2026) and may have moved since publication. Always check the original source linked at the bottom of this report for the latest figures.

Vacancy rates

  • The national rental vacancy rate has been sitting between 1.0% and 1.2% through the first half of 2026 (SQM Research) — well below the pre-2020 decade average of around 2.5%, and below the 2.0–3.5% range generally considered a "balanced" market.
  • Adelaide and Darwin are consistently the tightest capital city markets, both regularly recording vacancy rates under 1.0%.
  • All eight capital cities have recorded vacancy rates below 2% for an extended run through 2025–2026.

Rents

  • Combined capital city rents are averaging around $780–$785 per week, with national advertised rent growth running at roughly 6.6–7.8% year-on-year through the first half of 2026 (SQM Research).
  • Sydney remains the most expensive rental market, with house rents around $900/week; Hobart remains the most affordable capital.
  • Rent growth has consistently outpaced wage growth through this cycle, which is the core driver of Australia's ongoing rental affordability pressure.

What's driving it

Structural undersupply is the primary cause: population growth (driven mostly by net overseas migration) has outpaced new dwelling completions for several years running, with the accumulated housing shortfall estimated at 200,000–300,000 dwellings nationally. Some recent state-based tenancy reforms (such as NSW's 2025 changes ending no-grounds evictions) have also been linked by industry bodies to some landlords exiting the rental market, though the scale of that effect is debated.

Sources

  • SQM Research Weekly Rents & Vacancy Rates
  • Domain Rental Report
  • ABS Residential Rents

Related: Yield Analysis · National Market Overview