- Rent costs have risen 4.3% across Australia compared to September 2024.
- Darwin is seeing the most dramatic growth, up 4.2% through the quarter to become the second most expensive city to rent a house in.
- All of the capitals except Adelaide and Melbourne are seeing rents increase at a rate above the RBA's inflation target.
According to Cotality's Rental Review for Q3 every capital city except Adelaide saw rents increase from July to September.
By far the biggest grower was Darwin, with rents rising 4.2% through the quarter and hitting a new median of $743 for houses to become the second most expensive in the nation behind only Sydney.
Over the 12 months to September, only Melbourne (up 1.4%) and Canberra (up 2.8%) saw the median dwelling rent price increase by less than 3%.
Cotality economist Kaytlin Ezzy said a persistent lack of properties available for rent continues to drive up the cost.
"Ongoing scarcity in 'for rent' listings, coupled with continued strength in rental demand, has pushed the national vacancy rate to a new record low of 1.47% - less than half the pre-Covid decade average of 3.3%," she said.
"Limited supply continues to be a major catalyst in rising rents, with the number of rental listings tracking approximately 25% below the previous five-year average nationally for this time of year."
Median rent prices July to September 2025
Houses
| Median rent | Annual change | Current vacancy rate | |
|---|---|---|---|
| Sydney | $841 | 3% | 2.1% |
| Melbourne | $638 | 1.2% | 1.8% |
| Brisbane | $719 | 5.4% | 2.1% |
| Adelaide | $654 | 3.9% | 1% |
| Perth | $741 | 5.4% | 1.2% |
| Hobart | $605 | 6% | 1.4% |
| Darwin | $743 | 6.8% | 2.7% |
| Canberra | $725 | 2.6% | 2% |
| National | $685 | 4.3% | 1.7% |
Units
| Median rent | Annual change | Current vacancy rate | |
|---|---|---|---|
| Sydney | $753 | 4.4% | 1.3% |
| Melbourne | $589 | 1.8% | 1.1% |
| Brisbane | $631 | 6.4% | 1.1% |
| Adelaide | $543 | 4.1% | 0.8% |
| Perth | $674 | 7% | 1% |
| Hobart | $508 | 6.9% | 0.8% |
| Darwin | $592 | 8.9% | 1.4% |
| Canberra | $598 | 3.4% | 1.2% |
| National | $638 | 4.4% | 1.2% |
Will rent inflation alarm RBA?
The June quarter CPI inflation figures showed the cost of rent rose 4.5% from June '24 to '25.
While this is still well above the overall target range, annual rent growth was down considerably from the peak of March '24 - over the preceding year rents increased by 7.8%.
Elevated inflation expectations have seen many economists revise their cash rate predictions, with three of the four major banks now predicting no more cuts until 2026, and Ms Ezzy says it's possible elevated rents in recent months will drive up the headline inflation figure.
"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," she said.
The Q3 inflation figures are set for release on 29 October, the week before the RBA will meet again for the November monetary policy meeting (on Melbourne Cup day).
As of 2 October, 56% of the market expects an unchanged outcome, remaining at 3.60% for the third decision in a row.