What is the average rent in Australia in 2024?

Key Points

• The median rent for a house in Australian capital cities is $630 per week, as of March 2024. 
• The median rent for a unit in Australian capital cities is $620 per week, as of March 2024. 
• Combined capital city rents increased by 10.5% for houses between March 2023 - 2024.
• In regional Australia, the median rent for a house is $540 per week, as of March 2024. 

This article has been updated to reflect Domain's March 2024 Rental Report data, as well as data collected by Mozo for the 2024 rental report. 

Whether you’re looking at houses or units in capital cities or regional areas, rents across Australia have been rising at a rapid pace.

Data from Domain shows advertised rental prices for houses in Australia's capital cities surged 10.5% over the last year, and 5% over the last quarter. 

For regional renters, house rents increased 8% over the year to March 2024, and 1.9% over the quarter. 

Let's break down the statistics and what they mean for Australians.

What is the average rent for a house in Australia?

Sydney remains the most expensive city to rent a house in, with median weekly rents sitting at $750.

Canberra takes second place at $685 per week, followed by Darwin ($650 per week), Perth ($650 per week), and Brisbane ($620 per week).

The median weekly rent for a house in regional Australia is $540 per week.

The table below shows the median rent in each capital city, along with how much each has risen over the past year.

What is the average rent for a unit in Australia?

As for capital city unit prices, Sydney is still the most expensive city for renters looking for units, with the median unit price coming in at $700 per week.

The next most expensive capital cities are Brisbane ($590 per week), Canberra ($570 per week), Darwin ($550 per week), Perth ($550 per week), and Melbourne ($550 per week). 

The median weekly rent for a unit in regional Australia is $460 per week. 

Heavy renter competition has left many applicants feeling they have to bid above the advertised price or offer to pay several months’ worth of rent in advance just to secure a rental property, despite prohibitions on rent bidding.

High growth has also made landlords more comfortable passing along outrageous price hikes, especially in states or territories where there aren't any restrictions on how much a landlord can raise the rent, like NSW.

The table below shows the median rents across capital city units, along with the rate of change each market has seen in the past 12 months.

What percentage of income do Australians spend on rent?

According to Mozo's new 2024 rental report, almost half of Australian renters (49%) spend at least 30% of their income on rent in 2024, placing them in financial stress.

Worryingly, 1 in 10 Australian renters (11%) now spend more than 60% of their income to keep a roof over their head, up from 7% in 2023, and 4% in 2022.

As Mozo finance expert, Rachel Wastell, says, the number of renters experiencing 'rental stress' has increased dramatically over the past two years. 

“While not directly impacted by rate rises, rising rents are influenced by the connection between the cash rate hikes and high inflation. Essentially, as interest rates are hiked to reduce inflation, mortgage repayments increase, and landlords attempt to offset some of these rising costs by raising rents,” said Wastell. 

“As inflation remains high, ‘real’ wage growth stagnates, which means renters are now grappling with rising rents that are growing at a faster rate than wages.” 

Rental stress across Australia, defined by the same measurement as mortgage stress, has risen from 37% in 2022, to 49% in 2024. 

Mozo's survey found that Queenslanders report the highest rates of rental stress, where 53% of tenants put at least 30% of their income towards rent each week. 

Queensland is followed by Western Australia (51%), New South Wales (49%), Tasmania and South Australia (47%), and Victoria (46%). 

Wages aren't keeping up with the cost of renting

"Over the year to March 2024, the Wage Price Index grew by 4.1 percent, while combined capital city rents soared to 10.5 percent for houses,” said Wastell.

“This misalignment in wage versus rental price growth shows just how jarring it's been for Aussies scrambling to cover the cost of rising rents."

Why is rent going up in Australia?

Landlords have faced a lot of pressure to raise rents lately, primarily because Reserve Bank rate hikes and the higher cost of living in general make investment home loans more expensive.

There has also been a limited rental supply. There hasn't been enough construction of new homes, and an influx of new migrants and professionals moving back to the cities has lowered vacancy rates. With tight supply and heated demand, prices naturally rise.

Will rents keep rising in Australia?

Rental trends will vary between suburbs, so it depends on where you're looking for a place to rent.

PropTrack director of economic research, Cameron Kusher, expects the persistent strong demand and tight rental supply conditions to persist in 2024. 

"The sustained growth in advertised rents is indicative of excess demand for rental properties and insufficient supply, illuminating the desperate need for more rental properties and housing overall," says Kusher.

"Any significant imminent relief to the rental market challenges seems unlikely, with demand expected to remain elevated and supply to remain low leading to higher rents.

"However, we are expecting the slowing trend in rental growth to continue."

Rental vacancy rates Australia

According to Domain's March 2024 Rental Report, rental vacancy rates are at record lows in capital cities like Sydney, Melbourne, and Perth, but all of the capitals are well below the 'ideal' range of 2% to 3%, or what it was pre-pandemic (3.3%).

This limited supply has been attributed to an influx of overseas migrants, especially international students and temporary visa holders, as well as a nationwide stall in residential construction.

How often can a landlord increase rent?

How often a landlord can increase their tenant’s rent depends on which state or territory the property is located in and the type of rental agreement or lease the two parties have.

For example, rents typically can’t be increased during a fixed-term agreement unless this is stated upfront. On the other hand, renters on a periodic agreement (also known as a month-to-month agreement) can see their rent go up every six months so long as their landlord gives 60 days notice.

As for how large a rent rise a landlord can spring on their tenant, the answer is generally as much as can be justified by market conditions and state laws. If rental properties are currently in high demand and there isn’t enough supply, landlords can take advantage of the competition by pushing up prices. 

How to negotiate a rent increase

Arming yourself with as much information as possible can give you the upper hand when negotiating with your landlord or a property manager. 

"Before negotiating your lease terms, it's essential to research the market to understand where your rent stands compared to the average, and to make sure you present facts, while approaching the process with kindness," says Mozo finance expert, Rachel Wastell.

“Also, identify lease clauses that could justify a rent decrease, such as needed repairs, and familiarise yourself with tenant unions to know your rental rights.”

Tenants are encouraged to negotiate with their property agent and landlord if they propose an excessive rent hike. The sort of information you want to have handy can include:

• Rental prices on similar properties in the area
• The average rent increase in your suburb in the last year
• Advice from your local tenant's union
• Your rental ledger, to show you're a reliable tenant
• A counter-offer you think is equitable, given all of the above. 

The best tip for negotiating your rent, however, is to stay level-headed, polite, and impersonal during the negotiation process. While the stakes can feel high, it's important to act in good faith. Both landlords and renters are doing it tough, and you may not be aware of the situation on the other side.

Many landlords would rather accept a smaller rental increase than potentially lose out on weeks, or even months, of rent by having to find a new tenant when you move. Back yourself in the negotiation and know your value.

Keep in mind that your landlord is not entitled to know your financial situation, so keep the rental conversation purely about the fair rent value of the property. If you're experiencing financial hardship, talk to the local tenant's union or a solicitor about negotiating a temporary rental reduction or pause. 

If your landlord and property agent aren't playing ball, you can take it up with your local state or territory property tribunal as an 'excessive rent increase'. The tribunal can mediate negotiations and, in extreme situations, declare a rent hike as excessive.

However, keep in mind that a landlord isn't obligated to offer you a lease, so if they lose the tribunal hearing, they may simply terminate your rental agreement.