Australian renters are now spending a record 33.1% of gross household income on rent — the highest share ever recorded. Five years of near-continuous rent growth has added an estimated $202 per week to the typical rent bill since March 2021.
The national median weekly rent across combined capital cities reached $724 per week in March 2026, according to Cotality’s Q1 2026 Rental Review. That is up 5.6% on a year ago — and the pace of growth is accelerating again after a brief slowdown in mid-2025.
This article breaks down median rents for every capital city, separates houses from units, and explains why conditions remain extremely tight for renters heading into the second half of 2026.
National Snapshot — Key Numbers for 2026
- Combined capitals median rent: $724/week (March 2026, Cotality)
- Regional Australia median: $612/week
- Annual rent growth (capitals): +5.6% year to March 2026
- Annual rent growth (regional): +6.0%
- Capital city vacancy rate: 1.7%
- Share of income going to rent: 33.1% — a new record high
- Unit rents vs house rents: Unit rents rose 2.5% in Q1 2026 vs 2.0% for houses — units are now growing faster
Median Weekly Rent by Capital City — March 2026
The table below uses Cotality Q1 2026 data (released April 2026) where available. For Brisbane, Perth, Adelaide and Canberra, a Q1 2026 breakdown was not separately published — the Domain September 2025 Rental Report figures are shown for those cities with the date noted.
| City | Median weekly rent | Annual change | Source / Date |
|---|---|---|---|
| Sydney | $824 | +5.9% | Cotality March 2026 |
| Darwin | $699 | +9.2% | Cotality March 2026 |
| Melbourne | $632 | +4.4% | Cotality March 2026 |
| Hobart | $609 | n/a | Cotality March 2026 |
| Brisbane | ~$660–680 | +6.7% | Cotality growth rate; Domain Sep 2025 base |
| Perth | ~$680–700 | +6.7% | Cotality growth rate; Domain Sep 2025 base |
| Adelaide | ~$570–600 | n/a | Domain Sep 2025 |
| Canberra | ~$640–680 | n/a | Domain Sep 2025 |
| Combined capitals | $724 | +5.6% | Cotality March 2026 |
| Regional Australia | $612 | +6.0% | Cotality March 2026 |
Note: Brisbane and Perth figures are indicative based on confirmed 6.7% annual growth from Cotality and the September 2025 Domain baseline. Exact March 2026 per-city breakdowns for these markets were not separately published at the time of writing.
Houses vs Units — City-by-City Breakdown
The table below is from Domain’s September 2025 Rental Report and shows the split between house and unit rents. These are the most recent publicly available figures with a full city-by-city breakdown.
Median Weekly House Rent (Domain, September 2025)
| City | Median weekly rent (house) |
|---|---|
| Sydney | $780 |
| Canberra | $700 |
| Perth | $700 |
| Brisbane | $660 |
| Adelaide | $620 |
| Melbourne | $580 |
| Hobart | $580 |
| Darwin | $580 |
| Combined capitals | $650 |
Median Weekly Unit Rent (Domain, September 2025)
| City | Median weekly rent (unit) |
|---|---|
| Sydney | $750 |
| Brisbane | $630 |
| Darwin | $580 |
| Canberra | $580 |
| Perth | $570 |
| Melbourne | $575 |
| Adelaide | $520 |
| Hobart | $490 |
| Combined capitals | $650 |
Key point: Sydney unit rents ($750/week) are more expensive than house rents in six other capital cities.
Which Cities Are Growing Fastest
Darwin — Fastest Growth at +9.2%
Darwin recorded the strongest annual rent growth of any capital city in the year to March 2026, with the median rent rising to $699 per week. That is a sharp turnaround after several years of softer conditions in the NT market.
Brisbane and Perth — Tied at +6.7%
Both cities have seen sustained rent pressure driven by population growth, interstate migration, and constrained supply. Perth and Adelaide have the two tightest vacancy rates in the country.
Sydney — Most Expensive at $824/Week
Sydney remains the most expensive rental market in Australia by a significant margin. The median has risen to $824/week — more than $190 above the combined capitals average.
Melbourne — Slowest Growth on the Mainland at +4.4%
Melbourne recorded the weakest annual growth of any mainland capital and had the lowest median of the mainland cities at $632/week. That said, $632/week is still significantly above what a typical renter would have paid five years ago.
Vacancy Rates — Why Renters Have No Negotiating Power
Capital city vacancy rates sit at just 1.7%. A balanced rental market sits around 2.5%–3.0%.
The tightest markets:
| City | Vacancy rate (early 2026) |
|---|---|
| Adelaide | 1.0% |
| Perth | 1.2% |
| Combined capitals | 1.7% |
| Regional Australia | 1.9% |
When vacancies fall below 1.5%, renters have very little leverage to negotiate on price or terms. At 1.0%, Adelaide renters are essentially in a landlord-controlled market with few alternatives.
For the full picture on vacancy trends, see rental vacancy rates Australia 2026.
Affordability — What Renters Are Actually Paying Relative to Income
Renters are now committing 33.1% of gross median household income to rent — a new record high and up sharply from 26.2% in September 2020.
The widely used benchmark is that housing costs above 30% of income constitute rental stress. By that measure, the average Australian renter is now in stress.
Sydney is the most severe case. The Real Estate Institute of NSW has previously calculated that the median Sydney rent represents over 33% of average household income in that city — and that is the median. Renters below median income are in a significantly worse position.
For more context on how housing costs fit the broader financial picture, see rent vs buy Australia 2026 and the cost of living in Australia 2026.
Why Rents Keep Rising
Three factors are driving sustained rent growth in 2026:
1. Supply is structurally short. The number of rental listings nationally is tracking approximately 25% below the five-year average. New construction completions have not kept pace with population growth.
2. Demand is not easing. Net overseas migration, international students returning post-pandemic, and domestic movers have all sustained demand. First-home buyer schemes may be shifting some renters into ownership, but not at a pace that materially reduces rental demand yet.
3. Reacceleration after a brief pause. Rent growth had moderated to a trough of 0.9% quarterly in Q3 2025. By Q1 2026 that had rebounded to 2.1% for the quarter — the fastest quarterly pace in over a year.
The RBA has flagged that ongoing rent growth in the market will continue to feed into official CPI figures with a lag. For the latest on where inflation is tracking, see the Australia CPI March 2026 article.
Units vs Houses — Why Units Are Now Growing Faster
Unit rents rose 2.5% in Q1 2026 versus 2.0% for houses. This is a notable shift. The explanation is not catch-up from pandemic weakness — that phase has passed. It is now driven by renters actively seeking cheaper options as overall rent levels stay elevated. When households cannot afford house rents, they move to units. When unit supply is also tight, that demand pushes up unit prices at a faster rate.
Sydney unit vacancy hit a record low in 2025. Brisbane and Darwin units are seeing the sharpest quarterly increases. This trend is likely to continue while the overall vacancy rate stays below 2%.
What to Expect for the Rest of 2026
Cotality’s assessment is that conditions are unlikely to ease materially without a significant increase in rental housing supply. Given construction lead times, that supply is not arriving in 2026.
Renters should expect:
- Further rent increases, particularly for units in Sydney, Brisbane and Darwin
- Continued low vacancy rates keeping negotiating power with landlords
- Potential further CPI impact from rents, which is one factor the RBA is watching closely ahead of its May 2026 interest rate decision
Practical Notes for Renters
- Know your rights on rent increases. Rules differ by state. In NSW, rent can only be increased once every 12 months with 60 days notice. In QLD, once every 12 months. VIC has similar protections.
- Check the real vacancy data, not just listings. SQM Research publishes weekly vacancy data by postcode, which is more granular than city-level averages.
- Regional alternatives. Regional median rents sit at $612/week — about $112 below the capital city average. For workers with remote flexibility, the gap is worth considering. The regional market has tightened but remains more accessible.
- Utility costs add up. Weekly rent is only part of the picture — see electricity prices in 2026 for the full cost of running a home.
Frequently Asked Questions
What is the average weekly rent in Australia in 2026?
The median weekly rent across combined capital cities is $724 per week as of March 2026, according to Cotality. Regional Australia sits at $612 per week. These are median all-dwelling figures — houses typically cost more than units.
Which city has the highest rent in Australia in 2026?
Sydney, at a median of $824 per week — the most expensive rental market in the country.
Which city is the most affordable for renters?
Among capital cities, Hobart has the lowest median at $609 per week. Adelaide and Melbourne are the next most affordable mainland options.
How much have rents increased since 2021?
Cotality estimates that five years of sustained growth has added approximately $202 per week to the typical rent commitment since March 2021 — a national increase of around 43.8%.
Is the rental market getting better or worse in 2026?
Worse. After a brief slowdown in mid-2025, rent growth has reaccelerated. Vacancy rates remain near record lows and supply is not increasing at pace. Renters are spending a record share of income on housing.
What is a healthy vacancy rate for a rental market?
Generally, 2.5%–3.0% is considered a balanced market. Most Australian capitals are currently well below 2%, with Adelaide at 1.0% and Perth at 1.2% — both in crisis territory for renters.
Disclaimer: Median rent figures in this article are sourced from Cotality’s Q1 2026 Rental Review (March 2026) and Domain’s September 2025 Rental Report. Figures reflect median asking rents for new leases and do not represent the rent paid by all existing tenants. Individual rents vary significantly by location, property type and condition. This article is general information only.
Last updated: April 2026 | Sources: Cotality Q1 2026 Rental Review, Domain September 2025 Rental Report, ABS.
