Key takeaways
Rental markets remain extremely tight, with vacancy rates at or below 1% in most capital cities, keeping upward pressure on rents.
Darwin led the country for rental growth, with house rents up 9.7% over the month and 17.6% annually, while unit rents surged 21.5% over the year.
Sydney remains Australia's most expensive rental market, with median rents of $850 per week for houses and $800 per week for units.
Despite slower migration and increased first-home buyer activity, a lack of new housing supply is sustaining low vacancy rates and supporting rent growth.
Proposed tax changes that discourage property investment risk further reducing rental supply, potentially driving rents even higher in the years ahead.
Already low vacancy rates have continued to generally tighten over May for both houses and units with rents predictably still mainly on the rise.
Darwin was the top performer with house rents surging by 9.7% over the month followed by Canberra higher by 3.8%, Sydney up 1.8% and Melbourne higher by 0.8%.
Brisbane, Adelaide and Perth house rents were steady over the month with Hobart falling by 1.4%.
Sydney continued to report the highest capital city house rents over May and higher again at $850 per week with Melbourne continuing as the most affordable but also higher again at $600 per week.
Most capitals continue to report solid to strong annual house rent growth with Darwin the top performer up by 17.6% followed by Hobart up 9.3%.
House vacancy rates were again mainly lower or steady over May and generally remain at extremely low levels at or below 1.0% with Canberra the highest at just 1.2%.
Median Weekly Asking Rents May 2026 - Houses
| Rent | Month | Year | Vacancy Rate | Change | |
| Sydney | $850 | 1.8% | 6.3% | 1.0% | ↓ |
| Melbourne | $600 | 0.8% | 0.8% | 1.0% | ↓ |
| Brisbane | $700 | 0.0% | 7.7% | 0.7% | ↓ |
| Adelaide | $650 | 0.0% | 2.4% | 0.7% | ↓ |
| Perth | $750 | 0.0% | 7.1% | 0.8% | ↔ |
| Hobart | $634 | -1.4% | 9.3% | 0.5% | ↔ |
| Darwin | $850 | 9.7% | 17.6% | 0.2% | ↔ |
| Canberra | $750 | 3.8% | 6.4% | 1.2% | ↓ |
Units
Similar to houses, unit rental markets generally tightened over May with capital city rents mostly lower or steady, reflecting particularly a surge in demand following the end of April holiday distractions.
Darwin was also the top monthly performer with unit rents rising by 4.0% followed by Brisbane higher by 1.5%, Adelaide up 1.4%, Melbourne higher by 1.3% and Canberra up 0.6%.
- Also read:Australia’s Rental Crisis Is Getting Worse – And the “Solutions” May Be Making It Worse | Property Insiders
- Also read:Latest Property Price Forecasts. Australian Property Market Outlook 2026: Where To Now After The Rate Rise & Budget Changes.
- Also read:National Weekly Auction Report – June 6th 2026 | Auction Markets Mainly Steady Over Holiday Week
- Also read:Supply Surges, Asking Prices Stall as Housing Market Reaches Turning Point | Latest SQM Listing Data
- Also read:Home Prices Now Falling Following Rate Rises | Latest stats from Dr. Andrew Wilson
Perth and Hobart rents were steady; however Sydney unit rents fell 1.8% over the month.
Annual unit rents have increased solidly in most capitals with Darwin, Sydney, Perth, and Hobart highest up by 21.5%, 6.7%, 6.5% and 6.1% respectively. Melbourne unit rents are however down marginally by 0.4% over the year.
Sydney also remains the clear leader for weekly unit rents but lower at $800, with Hobart still clearly the most affordable and steady at $520 per week.
Capital city unit vacancy rates were mostly lower or steady over the month and similar to houses generally remain at low levels and well below 1.5% with the exception of Canberra.
Median Weekly Asking Rents May 2026 - Units
| Rent | Month | Year | Vacancy Rate | Change | |
| Sydney | $800 | -1.8% | 6.7% | 1.1% | ↓ |
| Melbourne | $588 | 1.3% | -0.4% | 1.4% | ↔ |
| Brisbane | $660 | 1.5% | 1.5% | 0.9% | ↓ |
| Adelaide | $558 | 1.4% | 2.8% | 0.9% | ↔ |
| Perth | $700 | 0.0% | 6.5% | 0.8% | ↑ |
| Hobart | $520 | 0.0% | 6.1% | 0.7% | ↓ |
| Darwin | $650 | 4.0% | 21.5% | 0.3% | ↓ |
| Canberra | $600 | 0.6% | 2.1% | 2.4% | ↑ |
End note
Although migration growth has continued to decline and first home buyers have surged courtesy of government policies, this has been offset by lower new supply that is contributing to maintaining low vacancy rates through 2026.
Ongoing low and falling vacancy rates are now generating consistently higher rents with new taxation polices designed to significantly reduce investor numbers likely to exacerbate already drastic low supply of rental properties and higher rents.
