The latest Domain Rental Report, cited in reporting by Domain, found Sydney remains the most expensive capital city rental market, with median asking rents for houses at $750 per week.
Domain chief of research and economics Dr Nicola Powell said underlying market pressures persist, stating: “We’re still seeing the same underlying conditions of high demand and low supply pushing rents up, but now unaffordability is putting the brakes on how much further they can go.”
The report found that while vacancy rates remain low, the typical relationship between tight supply and rising rents is weakening. Dr Powell said: “Usually, a low vacancy rate translates immediately into rental growth, but that connection is now loosening as such shockingly high rents are pushing people’s budgets to the extreme.”
The data indicates renters are adjusting their behaviour in response to elevated costs. According to the report, tenants are increasingly moving further from central locations, choosing smaller properties, or sharing accommodation to reduce expenses.
Dr Powell said: “Along with the cost of living rises and fuel costs and the uncertainty generally in the economy, tenants are having to find alternatives.”
Industry data cited in the report also points to a rise in shared rental arrangements. Ben Pretty, chief executive of Leaso, an AI matching service for renters, said: “The massive shift in the market we’re seeing now is to co-renting with friends.”
He added: “Now, we’re seeing two people coming together and applying jointly to rent even more pricy properties as a way of reducing their everyday spend. Everyone’s doing it tough with rents now at such high levels.”
Despite Sydney maintaining its position as the most expensive capital city, the report notes that the Gold Coast has become the most expensive rental market nationally, with median house rents reaching around $900 per week.
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