Brisbane has recorded the highest uptick in annual rental growth across Australia, up 1.7 percent according to Cotality’s latest Quarterly Rental Review.
The median weekly rental value across the nation’s combined capital cities is now $702 per week, with Brisbane slightly under that at $696 weekly.
In comparison, regional rents remain somewhat more affordable, typically renting for $591 per week.
Supply is still sitting below the five-year national average for this time of year, with 25 percent less stock.
Cotality’s seasonally adjusted Rental Value Index saw national rents post a 1.4 percent rise in Q3, the largest three-month increase since June 2024.
Cotality Economist Kaytlin Ezzy said the momentum was being spurred on by a persistent shortage in rental supply, highlighted by the record-low vacancy rate.
“While investors have comprised an elevated portion of home lending over the past two years, this hasn’t translated into additional available rental stock,” Ms Ezzy said.
“The news that rents are once again rising at a higher rate will be unwelcome news for renters. But it’s probably also unwanted news for homeowners and landlords servicing a mortgage.”
With “rents paid” a key component of the Consumer Price Index (CPI), the increased pace of rental value growth seen in recent months could push inflation higher.
“Along with some renewed upwards pressure from the cost of new dwellings, this renewed momentum in rents may lead to inflation exceeding RBA forecasts, which could keep the cash rate elevated for longer,” Ms Ezzy said.
Across the capitals, Sydney remains the most expensive rental capital, with the typical dwelling renting for $807 per week. Hobart maintained its title as the country’s most affordable city to rent, with a median weekly rental value of $584 per week.
