Rental conditions are easing and prices are flatlining in most cities, which is positive news for renters following several years of strong growth.
In some regions, weekly advertised rents are even starting to decline, offering further relief for renters in those areas.
According to PropTrack's latest Market Insights Report, national rent prices rose by 1.6% from September to December 2024.
Rents remained unchanged in all capitals except Brisbane and Canberra over the quarter.
In Sydney and Melbourne, the largest rental markets, weekly rents have been stable at $730 and $570 for the past six months.
Rent prices rose by 6.9% annually, which was well below the annual growth rates of 11.5% in 2023 and 15.6% in 2022.
Both the annual and quarterly trends reflect an easing in market conditions following record-high growth rates and historically-low vacancy rates over the past few years.
Certain areas have seen an even more significant shift, with rent prices not just stabilising but declining during the quarter.
Renters in these areas are likely to be benefitting from lower rental expenses and and reduced competition for homes.
| Region (SA4) | State | Median advertised rent December 2024 | Median advertised rent September 2024 | Quarterly % change |
| Adelaide - West | SA | $630 | $645 | -2.3% |
| Queensland - Outback | QLD | $440 | $450 | -2.2% |
| Central West | NSW | $500 | $510 | -2.0% |
| Sydney - Ryde | NSW | $965 | $980 | -1.5% |
| Darwin | NT | $680 | $690 | -1.4% |
| Sydney - Blacktown | NSW | $695 | $700 | -0.7% |
For houses, the Adelaide - West, Queensland - Outback and Central West were among the regions where prices fell. Rents decreased by $10-$15 per week from September to December 2024.
Conditions in the Sydney - Ryde, Darwin, and Sydney - Blacktown regions also improved during this period, with weekly rents down 2%-2.3%, or $5-$15, compared to three months prior.
Although the weekly savings might seem modest, tenants will save $65-$195 over the course of three months.
| Region (SA4) | State | Median advertised rent December 2024 | Median advertised rent September 2024 | Quarterly % change |
| Mandurah | WA | $500 | $520 | -3.8% |
| Melbourne - Inner East | VIC | $560 | $580 | -3.4% |
| South Australia - South East | SA | $310 | $320 | -3.1% |
| West and North West | TAS | $340 | $350 | -2.9% |
| South East | TAS | $390 | $400 | -2.5% |
| Darwin | NT | $550 | $560 | -1.8% |
| Barossa - Yorke - Mid North | SA | $310 | $315 | -1.6% |
| Sydney - Parramatta | NSW | $640 | $650 | -1.5% |
| Adelaide - West | SA | $485 | $490 | -1.0% |
| Sydney - Outer West and Blue Mountains | NSW | $520 | $525 | -1.0% |
Mandurah, Melbourne - Inner East and South Australia - South East led in terms of rent reductions for units. Over the quarter, weekly rents fell by 3.8%, 3.4% and 3.1%, respectively, reflecting a decline of $10-$20 per week.
People renting units in the West and North West, South East, and Barossa - Yorke - Mid North regions also had some reprieve with rents now lower than they were in September 2024.
Rents for units in Sydney - Parramatta, Adelaide - West, and Sydney - Outer West and Blue Mountains decreased as well with renters now paying $5-$10 less per week.
The moderation in the market is a result of an increase in the number of properties available for rent in recent months, likely due to the return of investors and more first-home buyers choosing to buy instead of rent.
Investor lending increased by 25.2% from the September 2023 quarter to the September 2024 quarter according to the Australian Bureau of Statistics, while first-home buyer loans increased by 8% over the same period.
As we look ahead, we expect rents to increase at a more moderate rate this year.
However, this growth is anticipated to be notably slower than those observed in prior years, which may ease the burden on renters.
