Rental Market report

Stay ahead of the game with Rent.com.au’s February 2024 rental market report. Get the latest scoop on leasing trends, rental prices, affordability and market news across Australia’s metro and regional areas.

RENTAL MARKET SUMMARY  

  • National median rent remained at $600 per week for apartments and $650 per week for houses.
  • Sydney, Canberra and Perth saw the biggest increases in median rent with Sydney up 4.17%, Canberra up 3.33% and Perth up 3.17% month-on-month.
  • Hobart recorded the biggest decrease in median rent for apartments down by -4.35% and the biggest decrease in median rent for houses down -2.36% month-on-month.
  • Overall, the Australian rental market remains very tight, with demand for rental accommodation outstripping supply.

Table 1: Median rent (apartments v houses) and price per room

Metro areaAPARTMENTSMonthly changeHOUSESMonthly changePRICE PER ROOMMonthly change
Sydney, NSW$7504.17%$8500%$3660.46%
Melbourne, VIC$5500%$5601.82%$2502.04%
Brisbane, QLD$6250%$6500%$2451.38%
Perth, WA$6503.17%$6500%$2233.08%
Adelaide, SA$5500%$5800.87%$200-3.23%
Hobart, TAS$517-2.36%$550-4.35%$2154.03%
Darwin, NT$5800%$640-1.54%$212-1.92%
Canberra, ACT$620-3.33%$6752.27%$265-3.64%
National median$6000%$6500%$2750%
Source: 2024 Rent.com.au property listing data

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PRICE TRENDS 📈

What’s being talked about?

Australia’s national median rent remained relatively stable in February, with some variation across the country. The overall rental market remained very tight, with demand outstripping supply. The most significant month-on-month change (positive) was in Sydney, NSW, where the median rent increased by 4.17% to $750 per week. Conversely, the most significant month-on-month change (negative) was seen in Hobart, TAS, where median rent decreased by 2.36%.

In February, the median rent for houses was $550 per week in Hobart, TAS, the cheapest place to rent a house. The most expensive city to rent a house is Sydney, NSW, where the median rent is $850 per week.

Housing in Australia is a hot topic, with ongoing discussions centred around making it more affordable. The lack of housing supply is a significant concern, as the demand for rental properties is increasing while building approvals and commencements are decreasing. The collapse of construction companies and a shortage of tradies has also contributed to the slow pace of new builds.

Australia’s capital cities are experiencing a solid rebound, with increasing migration, the return of international students, and Australians returning to CBDs.

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WHAT WILL A ROOM IN A RENTAL COST ME? 💰

The national median price per room for apartments increased by 11.76% year-on-year to $380, while the national median price per room for houses increased by 14.58% year-on-year to $275.

A tenant in Sydney paying $325 per week for a room in a shared house in February 2023 is now paying $365 per week, an increase of $40 per week. A landlord in Melbourne renting out a room in their apartment for $310 per week in February 2023 is now renting it out for $360 per week, an increase of $50 per week. In Hobart there has been an increase of $70 per week for a room in an apartment – we are seeing these figures creep up month on month across the board.

Rising room prices are making it more difficult for tenants to afford to rent in Australia. It is also putting pressure on landlords, as they face higher borrowing costs and maintaining their rental properties. When you find a property you like, start your house hunt early and act quickly. Be flexible with your budget and location requirements, and consider renting a room to save money.

Metro areaAPARTMENTS% change (annual)HOUSES% change (annual)
Sydney, NSW$4257.59%$36612.62%
Melbourne, VIC$36016.13%$25016.28%
Brisbane, QLD$33013.79%$24515.57%
Perth, WA$35014.75%$22311.50%
Adelaide, SA$25013.65%$2009.29%
Hobart, TAS$31828.23%$2154.37%
Darwin, NT$240-8.75%$2126%
Canberra, ACT$45020%$2653.52%
National median$38011.76%$27514.58%
Source: 2024 Rent.com.au property listing data

HOW ARE THE REGIONS FARING? 🌳

Regional rents in Australia continued to rise in February 2024, with the national median rent increasing by 8% year-on-year. All states and territories recorded annual rent increases, with the most significant increases seen in Western Australia (13.46%), Victoria (10%) and South Australia (7.89%).

Several factors are driving tight rental market conditions in regional Australia. These factors include strong demand from renters, as more people opt to live in regional areas due to lifestyle factors and affordability. Additionally, a shortage of rental supply exists because investors have been selling off their rental properties in recent years.

Regional rents are expected to continue to rise in the coming months due to high demand for rental accommodation and tight supply.

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Table 3: 8% change to regional rents in February 2024

State/TerritoryFeb-24% change from Feb '23
New South Wales$5506.80%
Victoria$44010%
Queensland$5607.69%
Western Australia$59013.46%
South Australia$4107.89%
Tasmania$4503.45%
Northern Territory$5505.77%
Aus. Capital Territoryn/an/a
National median$5408%
Source: 2024 Rent.com.au property listing data

WHAT’S TRENDING?

Rent.com.au

Rent.com.au is Australia's largest company dedicated to renters and is owned and operated by ASX-listed Rent.com.au Limited (RNT:ASX). For over 15 years, Rent.com.au has exclusively focused on making renters' lives easier by making it easier to find a property, secure it, move in and pay rent.

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