Australian Rental Prices Hit Record Highs in June Quarter

Australian rental prices reached record highs in the quarter ending June 2026, with the national median rent rising to between $670 and $705 per week. The Australian Government responded to the crisis by announcing a more than 50% increase in Commonwealth Rent Assistance and a plan to build 80,000 new rental homes over a decade. These measures follow reforms to negative gearing and capital gains tax introduced in the May Federal Budget to help renters transition to homeownership.

Sydney remains the most expensive market, with median house rents rising 6.3% to $850 per week and vacancy rates dropping to 1.1%. In Perth, house rents hit a record median of $750 per week, though growth slowed to 0.4% over the June quarter. Economists suggest this deceleration indicates that tenants have reached an affordability ceiling, meaning they can no longer absorb further price hikes. In Brisbane, median advertised rents peaked at $695 per week, with unit growth currently outpacing houses.

Industry reports indicate severe hardship for tenants, with some Western Australians paying $20,000 more annually than they did in 2021. While the budget tax changes aim to assist buyers, some economists warn they may inadvertently pressure rents further by decreasing investor demand for new rental supply.