Rental markets remain generally tight in most capitals for both houses and units, with no release in sight for tenants who clearly remain under blockade from persistent rent increases. It’s Australia’s fastest-growing tenure, but renting is increasingly unaffordable.

Over the past year and going into 2024, rental market environment have tightened considerably in cities across Australia. As a result, rents are now growing strongly all across the country.

Sydney and Melbourne have seen the biggest drops in available rental properties in the last 12 months as both cities continue to be hot spots for migration. Sydney’s high population, strong economic and job growth, coupled with limited housing supply, have created an extremely competitive rental market

The COVID-19 pandemic had unprecedented shock to the rental housing market, reducing demand for rental properties at the same time as supply has increased.

Sydney has the highest median rent valuation of the capital city house and unit markets with huge increase of 14.6% and 24.8% year-on-year respectively

Australia’s rental crisis isn’t going to be resolved any time soon. The lack of supply and demand will only add further rising pressure on rental values, and tenants are likely to start re-forming share houses to share the rental burden.