National median weekly advertised rents rose by 1.6% during the December 2024 quarter, reaching a new high of $620 per week.
Over the year, rents increased by 6.9%, a significant slowdown from the 11.5% growth recorded in 2023.
Capital city rents followed a similar trend, rising 1.6% over the quarter to $640 per week.
However, Sydney ($730) and Melbourne ($570) rents have remained flat for six months, offering some respite in the nation’s two largest rental markets.
Brisbane and Canberra were the only capital cities to record rent increases in the December quarter, while Adelaide and Perth experienced the strongest annual growth in rents.
“The pace of rent growth across the country is slowing, with market conditions easing for renters.
Rents are now growing at their slowest pace since late 2021,” said REA Group Senior Economist Paul Ryan.
He attributed the slowdown to an increase in available rentals and cost-of-living pressures that have capped tenants’ spending capacity.
For houses, rents rose by 1.6% in the December quarter, while unit rents remained steady.
However, over the past year, units have experienced slightly higher growth (+7.1%) compared to houses (+5.9%).
Regional rents were unchanged at $550 per week in the December quarter but saw a significant 10% annual increase in 2024.
“January marks the busiest time of year for the rental market, with tenants out in large numbers looking for new rental homes,” said Mr Ryan.
“We expect rents to increase moderately this year, with the trend of slower rent growth to persist throughout 2025.”
