Australia’s rental market has tightened again, with new data from SQM Research showing the national residential vacancy rate has fallen to 1.0% in March 2026, down from 1.1% the month prior.
For agents on the ground, it confirms what many are already experiencing: demand is still running well ahead of available supply.
The total number of vacant rental properties across the country has now dropped to 31,732 dwellings, reinforcing just how constrained the market has become heading into the autumn leasing period.
A market defined by extreme tightness in key cities
While conditions vary slightly across capitals, most major rental markets remain firmly in shortage territory:
Perth remains one of the tightest of the capital cities at 0.5% vacancy, with fewer than 1,000 homes available
Darwin is even lower at 0.4%, continuing to record some of the most constrained conditions nationally
Hobart also sits at 0.4%, reflecting ongoing supply challenges
Brisbane holds at 0.8%, maintaining sustained pressure on renters
Adelaide has eased slightly to 0.7%, but remains historically tight
Sydney has fallen to 1.1%, down from 1.3%, signalling renewed tightening
Melbourne has eased to 1.4%, remaining comparatively more balanced
Canberra is steady at 1.1%, showing stability after earlier volatility
The data reinforces a continued environment of low turnover, fast leasing cycles, and limited negotiation power for renters in most markets.
Rents still climbing despite short-term pauses
On the pricing side, the picture remains broadly upward. National advertised rents have risen 5.9% year-on-year, with combined rents now averaging $692.45 per week across Australia. Capital city rents are significantly higher, averaging $791.44 per week.
Some markets are still seeing momentum build, particularly in unit markets, while others are showing brief pauses after strong growth phases.
Sydney combined rents are up 7.4% annually, with houses averaging $1,154.05 per week
Melbourne has recorded steady growth of 5.9% year-on-year
Brisbane has flattened slightly month-to-month but remains 6.8% higher annually
Perth continues to climb, up 1.2% monthly and 6.9% annually
Adelaide is rising again, up 1.5% for the month
Canberra has seen a sharper monthly lift of 2.5%
Darwin continues to post strong annual growth of 10.2%
Hobart leads annual growth at 12.5%, reflecting persistent supply constraints
The split between flat short-term movement and strong annual gains highlights a market that is pausing in bursts, but not reversing.
Commenting on the results, managing director of SQM Research, Louis Christopher, said the national vacancy rate reflects a structurally tight rental environment.
“The national vacancy rate dropping to 1.0% highlights just how tight Australia’s rental market has become. We are now seeing vacancy rates at critically low levels in several cities, particularly Perth, Darwin and Hobart.”
He added that while some markets are experiencing short-term fluctuations in rent growth, the broader trend remains firmly upward.
“While some markets are showing brief pauses in rental growth, the overall trend remains upward due to the ongoing imbalance between supply and demand.”
Mr Christopher also warned that without meaningful increases in housing supply, pressure is likely to persist through the year ahead.
“Without a significant increase in new housing supply and/or a stabilisation of population growth rates, it is likely that rental pressures will remain elevated throughout 2026. These accelerated rates of rental increases will no doubt feed through to the CPI at some point this year.”
What this means for PMs right now
For real estate professionals, the message from the data is clear: the leasing market remains highly competitive, but not uniform.
- Well-presented stock is still leasing quickly in most capitals
- Suburban and outer-metro markets are feeling the same pressure as CBD areas
- Tenant demand remains strong enough to sustain rent growth even where monthly figures appear flat
- Investor interest is likely to remain sensitive to yield conditions, particularly in tight markets like Perth, Hobart and Brisbane
With vacancy sitting at just 1%, agents are operating in a market where even small shifts in supply or demand can quickly change leasing dynamics.