If it feels like rent in Australia has quietly crossed into “uncomfortable” territory, that’s because it has.
Australian rent prices have officially hit record highs, and the latest data confirms what renters across the country are feeling every week at inspection time. According to PropTrack figures published by realestate.com.au, the average rent in Australia has climbed to levels never seen before — and while growth is slowing, the pressure hasn’t eased.
As someone who spends every day analysing housing, affordability, and household budgets, I can say this clearly: rent prices in Australia are no longer just rising — they’ve reset to a higher baseline.
Realestate.com.au Market Insight – Rental Prices, December 2025 (PropTrack) report
PropTrack Average Rental Prices – December 2025 Quarter
Median Weekly Rent, Quarterly Change & Annual Change
| Region | Houses Median Rent | QoQ | YoY | Units Median Rent | QoQ | YoY | Dwellings Median Rent | QoQ | YoY |
| Sydney | $800 | 0.6% | 3.2% | $750 | 0.7% | 7.1% | $760 | 1.3% | 4.1% |
| Melbourne | $575 | 0.9% | -0.9% | $575 | 0.0% | 4.5% | $575 | 0.9% | 2.7% |
| Brisbane | $690 | 2.2% | 6.2% | $650 | 4.0% | 8.3% | $670 | 3.1% | 6.3% |
| Adelaide | $630 | 1.6% | 5.0% | $550 | 2.8% | 6.8% | $600 | 0.0% | 3.4% |
| Perth | $720 | 2.9% | 6.7% | $670 | 3.1% | 7.2% | $700 | 1.4% | 7.7% |
| Hobart | $600 | 0.8% | 7.1% | $510 | 2.0% | 5.2% | $573 | 4.2% | 9.1% |
| Darwin | $720 | 0.0% | 5.9% | $600 | 1.7% | 9.1% | $650 | 0.0% | 8.3% |
| ACT | $720 | 2.9% | 2.9% | $600 | 3.4% | 3.4% | $630 | 1.6% | 1.6% |
| Capital Cities | $670 | 1.5% | 3.1% | $650 | 0.0% | 4.8% | $650 | 0.0% | 1.6% |
| Rest of NSW | $630 | 2.4% | 5.0% | $530 | 1.9% | 6.0% | $600 | 1.7% | 5.3% |
| Rest of Vic | $500 | 0.0% | 4.2% | $410 | 2.5% | 3.8% | $490 | 2.1% | 6.5% |
| Rest of Qld | $680 | 0.7% | 4.6% | $650 | 0.0% | 8.3% | $670 | 1.5% | 6.3% |
| Rest of SA | $450 | 2.3% | 7.1% | $330 | 3.1% | 10.0% | $430 | 2.4% | 7.5% |
| Rest of WA | $670 | 3.1% | 6.3% | $635 | 5.8% | 5.8% | $650 | 0.0% | 4.8% |
| Rest of Tas | $650 | 8.3% | 14.0% | $420 | 2.4% | 2.4% | $480 | 4.3% | 6.7% |
| Rest of NT | $490 | 3.2% | 8.9% | $480 | 14.3% | 14.8% | $560 | 7.7% | 9.8% |
| Regional Areas | $600 | 1.7% | 5.3% | $550 | 0.0% | 10.0% | $590 | 1.7% | 7.3% |
| National | $650 | 0.0% | 3.2% | $640 | 1.6% | 6.7% | $650 | 1.6% | 4.8% |
Australian Rent Prices Hit Record Highs in 2025: The National Picture
Australian rent prices hit record highs in December 2025, with the national median weekly rent now sitting at $650.
That means:
- Rent increased 1.6% in just one quarter
- Rent is 4.8% higher than a year ago
- Renters are paying around $1,560 more per year
- Compared to five years ago, the annual cost of renting is nearly $12,000 higher
So what is the average rent in Australia in 2025?
Right now, the answer is simple — $650 per week nationally, with significant variation depending on where you live.
Australian Rent Prices Hit Record Highs: Houses vs Units Explained
One of the most important trends hiding inside the headline numbers is what type of home Australians are renting.
Why unit rents are rising faster than house rents
Over the past 12 months:
- Unit rents increased by 6.7%
- House rents increased by 3.2%
This gap matters.
Higher-density living is now the pressure valve for Australia’s rental market. Apartments, townhouses and units are absorbing demand from:
- Overseas migration
- Younger renters delaying home ownership
- Downsizers and single-person households
From my perspective, this explains why inner-city rental markets have tightened faster than outer suburban house markets — even where overall supply has improved.
Rent Prices by City: Australian Rent Prices At Record Highs Across Capitals
Australian rent prices hit record highs across every capital city, but the pace of growth isn’t uniform.
Most expensive cities to rent in Australia in 2025
Based on median weekly rent for all dwellings:
- Sydney – $760 per week
- Perth – $700 per week
- Darwin – $650 per week
Sydney remains the most expensive rental market in the country. Renters in Sydney are paying around $9,620 more per year than renters in Melbourne — a gap that continues to widen.
Which Australian city has the cheapest rent in 2025?
Despite recent increases:
- Hobart – $573 per week
- Melbourne – $575 per week
Melbourne is particularly notable. It was the only capital city where house rents fell over the past year, declining by 0.9%. While unit rents still rose, Melbourne has quietly become one of the most affordable capital cities to rent in Australia.
Sydney Rent vs Melbourne Rent: Why the Gap Is Nearly $10,000 a Year
This is one of the most searched rental questions in Australia — and for good reason.
- Sydney median rent: $760 per week
- Melbourne median rent: $575 per week
That difference adds up to nearly $10,000 per year for renters choosing Sydney over Melbourne.
In my view, this gap reflects:
- Structural supply constraints in Sydney
- Higher-income job concentration
- Persistent demand from international migration
For renters deciding between cities, this cost difference alone can materially change household budgets.
Regional Australia Rent Prices: Growth Is Even Faster Outside Capital Cities
While capital cities grab the headlines, regional rent prices are rising even faster in many parts of Australia.
Where regional rent growth is strongest
Over the past quarter:
- Regional Northern Territory: +9.8%
- Regional South Australia: +7.5%
- Regional Tasmania: +6.7%
This tells us something important:
The “tree-change” and “sea-change” effect hasn’t reversed. Regional rental affordability is now under pressure in ways we simply didn’t see pre-pandemic.
Why Are Rent Prices So High in Australia Right Now?
This is one of the most common AEO queries — and the answer is multi-layered.
Key drivers pushing Australian rent prices higher
- Low vacancy rates across most markets
- Strong population growth
- Construction slowdowns
- Rising holding costs for landlords
While rent growth is slowing compared to last year, rents remain at record highs in every market. According to PropTrack economists, new rental price records are expected again in 2026 — even if growth moderates.
Is Rent Going Down in Australia in 2026?
Short answer: No — but it may rise more slowly.
Rent growth is easing, which is good news. However:
- Supply remains constrained
- Demand remains elevated
- Vacancy rates are still historically low
From my experience analysing lending and household cash flow, this means renters shouldn’t expect meaningful rent declines — just fewer shock increases.
Frequently Asked Questions About Australian Rent Prices
What is the average rent in Australia in 2025?
The national median weekly rent is $650, according to PropTrack data from realestate.com.au.
Which city has the highest rent in Australia?
Sydney is the most expensive city to rent, with a median rent of $760 per week.
Which city has the cheapest rent in Australia?
Hobart and Melbourne are currently the most affordable capital cities, both around $575 per week.
Why have Australian rent prices increased so much?
Low vacancy rates, population growth, limited new housing supply and rising costs for landlords have all contributed.
What This Means for Renters and Buyers
If you’re renting, understanding rental trends is now essential financial literacy. If you’re thinking about buying, these rent figures explain why so many Australians are reassessing whether renting long-term still stacks up.
That’s where comparing options matters.
Ready to Take Control of Your Housing Costs?
If rent increases are pushing your budget to breaking point, it may be time to explore your alternatives.
Compare home loan rates, refinancing options, and affordability tools at RateBuster to see whether buying — or refinancing — could put you back in control. Our mortgage calculators are the tool
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