CoreLogic’s national median rent value ticked up to $601 per week last month, equating to the median annual rent of $31,252 a year.
CoreLogic median rent is based on a current estimate of rent income, describing what the median dwelling in Australia would rent for if you put it on the market at any given time.
The $601 median is a series high and coincides with total annual rent increases of 8.3% nationally.
The median has increased markedly from $437 per week in August 2020, pushing annual rent values up by more than $8,000 in that time.
How did we get here?
Recent growth in rent values, which averaged 9.1% a year for the past three calendar years, stands in stark contrast to the average annual growth rate of 2.0% in the 2010s.
Since the onset of the pandemic, several factors have contributed to unusually large rent rises, including:
A notable decline in the average household size from late 2020, partly driven by a reduction in share housing – meaning more dwellings were needed even when population growth was close to zero in 2021.
A rapid increase in the Australian population from late 2022 as international border restrictions were lifted.
A temporary shock to investment housing activity between May 2022 and February 2023 as interest rates rose.
Investor activity has picked up markedly since, but there is still a lot of catch-up required in establishing new rentals.
Longer-term factors have also increased demand for rentals.
The reduction in social housing supply as a portion of all dwellings over the decades has placed more pressure on the private rental market, as has a declining rate of home ownership.
Average household size has also been gradually declining over decades due to economic and demographic factors (for example, more people living alone), requiring more dwellings to house a given population.
Rent value increases have broadly outpaced wage and income rises at the national level, meaning rental affordability has also deteriorated.
The portion of gross median household income required to service median rent rose from 26.7% of income in March 2020 to 31.0% in September last year.
While a far higher portion of median income is required to service a new mortgage, renters tend to be on lower incomes.
The latest data from the ABS suggests median gross household income was 41.8% lower across renting households than owner-occupiers with a mortgage.
Median rents across the capital city markets ranged from $745 per week in Sydney, to $535 per week in Hobart.
Canberra and Hobart were the only markets to see a decline in rent values through 2023, at -1.9% and -3.5% respectively.
| Region | Median weekly rent | Monthly change in rents | Quarterly change in rents | Annual change in rents |
| Sydney | $745 | 0.60% | 2.30% | 10.20% |
| Melbourne | $565 | 0.50% | 1.50% | 11.10% |
| Brisbane | $627 | 0.50% | 1.90% | 8.20% |
| Adelaide | $565 | 0.70% | 2.00% | 7.70% |
| Perth | $630 | 1.20% | 3.60% | 13.40% |
| Hobart | $535 | 0.60% | 0.80% | -3.50% |
| Darwin | $611 | -0.20% | -0.60% | 3.00% |
| Canberra | $651 | 0.20% | 0.90% | -1.90% |
| Combined capitals | $631 | 0.70% | 2.20% | 9.80% |
| Combined regionals | $518 | 0.60% | 1.80% | 4.30% |
| National | $601 | 0.60% | 2.10% | 8.30% |
Source: CoreLogic. Median weekly rent value refers to the middle of valuations observed in the region, while growth rates are based on changes in the CoreLogic Rental Value index, which take into account value changes across the market.
Figure 3 summarises the state of rental markets across SA4 regions of Australia.
Of 88 SA4 dwelling markets analysed, only 16 were down from historic highs.
This ranged from the New England and North West market of regional NSW, which has fallen marginally from a peak in the previous month to the Outback North of WA, where values are still 25.6% below the peak achieved amid the 2010s resources boom.
Despite being well below its historic peak, the Outback North of WA had a relatively strong uplift in rent values over the past year, at 11.1%.
Across the SA4 rental markets, the highest median weekly rent was in Sydney’s Northern Beaches ($1,167 per week), followed by the Eastern Suburbs ($1,046).
The lowest median weekly rent across the capital city SA4 markets was the Melbourne–West market.
| Greater Capital City / Region | SA4 Region Name | Median Rent value | Peak date of CoreLogic Rent value index | Change from peak | Annual Change in Rent CoreLogic value index |
| Sydney | Central Coast | $619 | at peak | — | 2.30% |
| Sydney | Sydney - Baulkham Hills and Hawkesbury | $888 | at peak | — | 7.70% |
| Sydney | Sydney - Blacktown | $642 | at peak | — | 11.50% |
| Sydney | Sydney - City and Inner South | $895 | 31/05/2023 | -0.30% | 9.20% |
| Sydney | Sydney - Eastern Suburbs | $1,046 | at peak | — | 14.10% |
| Sydney | Sydney - Inner South West | $733 | at peak | — | 14.80% |
| Sydney | Sydney - Inner West | $834 | at peak | — | 11.50% |
| Sydney | Sydney - North Sydney and Hornsby | $907 | at peak | — | 7.00% |
| Sydney | Sydney - Northern Beaches | $1,167 | at peak | — | 7.90% |
| Sydney | Sydney - Outer South West | $583 | at peak | — | 9.00% |
| Sydney | Sydney - Outer West and Blue Mountains | $600 | at peak | — | 8.20% |
| Sydney | Sydney - Parramatta | $670 | at peak | — | 14.50% |
| Sydney | Sydney - Ryde | $762 | at peak | — | 13.20% |
| Sydney | Sydney - South West | $674 | at peak | — | 11.10% |
| Sydney | Sydney - Sutherland | $873 | at peak | — | 10.00% |
| Melbourne | Melbourne - Inner | $619 | 31/07/2023 | -0.80% | 8.70% |
| Melbourne | Melbourne - Inner East | $690 | at peak | — | 14.50% |
| Melbourne | Melbourne - Inner South | $677 | at peak | — | 9.80% |
| Melbourne | Melbourne - North East | $537 | at peak | — | 13.40% |
| Melbourne | Melbourne - North West | $519 | at peak | — | 13.40% |
| Melbourne | Melbourne - Outer East | $595 | at peak | — | 11.40% |
| Melbourne | Melbourne - South East | $564 | at peak | — | 13.50% |
| Melbourne | Melbourne - West | $491 | at peak | — | 13.10% |
| Melbourne | Mornington Peninsula | $585 | at peak | — | 4.10% |
| Brisbane | Brisbane - East | $702 | at peak | — | 7.30% |
| Brisbane | Brisbane - North | $646 | at peak | — | 8.20% |
| Brisbane | Brisbane - South | $681 | at peak | — | 8.30% |
| Brisbane | Brisbane - West | $744 | at peak | — | 8.10% |
| Brisbane | Brisbane Inner City | $700 | at peak | — | 11.60% |
| Brisbane | Ipswich | $534 | at peak | — | 6.60% |
| Brisbane | Logan - Beaudesert | $574 | at peak | — | 7.20% |
| Brisbane | Moreton Bay - North | $569 | at peak | — | 8.50% |
| Brisbane | Moreton Bay - South | $625 | at peak | — | 4.70% |
| Adelaide | Adelaide - Central and Hills | $613 | at peak | — | 4.90% |
| Adelaide | Adelaide - North | $529 | at peak | — | 10.20% |
| Adelaide | Adelaide - South | $574 | at peak | — | 7.90% |
| Adelaide | Adelaide - West | $575 | at peak | — | 9.00% |
| Perth | Mandurah | $565 | at peak | — | 10.30% |
| Perth | Perth - Inner | $773 | at peak | — | 11.60% |
| Perth | Perth - North East | $622 | at peak | — | 15.70% |
| Perth | Perth - North West | $651 | at peak | — | 12.80% |
| Perth | Perth - South East | $623 | at peak | — | 15.60% |
| Perth | Perth - South West | $617 | at peak | — | 12.50% |
| Hobart | Hobart | $535 | 31/03/2023 | -4.80% | -3.50% |
| Canberra | Australian Capital Territory | $651 | 30/06/2022 | -3.30% | -1.90% |
| Darwin | Darwin | $611 | 31/10/2023 | -0.90% | 3.00% |
| Rest of NSW | Capital Region | $518 | 30/09/2022 | -5.30% | -4.40% |
| Rest of NSW | Central West | $454 | at peak | — | 2.40% |
| Rest of NSW | Coffs Harbour - Grafton | $585 | at peak | — | 1.40% |
| Rest of NSW | Far West and Orana | $404 | at peak | — | 6.60% |
| Rest of NSW | Hunter Valley exc Newcastle | $564 | at peak | — | 3.90% |
| Rest of NSW | Illawarra | $668 | at peak | — | 1.40% |
| Rest of NSW | Mid North Coast | $521 | 30/04/2023 | -0.20% | 1.60% |
| Rest of NSW | Murray | $418 | 30/11/2023 | -2.10% | -0.50% |
| Rest of NSW | New England and North West | $420 | 30/11/2023 | -0.02% | 1.50% |
| Rest of NSW | Newcastle and Lake Macquarie | $611 | at peak | — | 3.40% |
| Rest of NSW | Richmond - Tweed | $702 | at peak | — | 1.60% |
| Rest of NSW | Riverina | $450 | at peak | — | 6.40% |
| Rest of NSW | Southern Highlands and Shoalhaven | $591 | 30/06/2022 | -6.40% | - 1 .1 % |
| Rest of Vic. | Ballarat | $429 | at peak | — | 6.20% |
| Rest of Vic. | Bendigo | $466 | at peak | — | 5.10% |
| Rest of Vic. | Geelong | $505 | at peak | — | 2.90% |
| Rest of Vic. | Hume | $464 | at peak | — | 3.10% |
| Rest of Vic. | Latrobe - Gippsland | $439 | at peak | — | 2.90% |
| Rest of Vic. | North West | $384 | at peak | — | 5.30% |
| Rest of Vic. | Shepparton | $470 | at peak | — | 8.30% |
| Rest of Vic. | Warrnambool and South West | $440 | 30/11/2023 | -0.10% | 5.00% |
| Rest of Qid | Cairns | $534 | at peak | — | 6.40% |
| Rest of Qid | Central Queensland | $486 | at peak | — | 7.60% |
| Rest of Qid | Darling Downs - Maranoa | $431 | at peak | — | 9.20% |
| Rest of Qid | Gold Coast | $792 | at peak | — | 6.00% |
| Rest of Qid | Mackay - Isaac - Whitsunday | $565 | at peak | — | 10.80% |
| Rest of Qid | Queensland - Outback | $410 | 30/09/2012 | -14.20% | 4.20% |
| Rest of Qid | Sunshine Coast | $711 | at peak | — | 2.90% |
| Rest of Qid | Toowoomba | $509 | at peak | — | 6.10% |
| Rest of Qid | Townsville | $473 | at peak | — | 5.10% |
| Rest of Qid | Wide Bay | $511 | at peak | — | 8.60% |
| Rest of WA | Bunbury | $591 | at peak | — | 12.60% |
| Rest of WA | Western Australia - Outback (North) | $862 | 31/10/2011 | -25.60% | 10.40% |
| Rest of WA | Western Australia - Outback (South) | $488 | at peak | — | 9.00% |
| Rest of WA | Western Australia- Wheat Belt | $441 | at peak | — | 10.70% |
| Rest of Tas. | Launceston and North East | $464 | 31/03/2023 | -2.10% | -0.20% |
| Rest of Tas. | South East | $429 | 31/01/2023 | -17.20% | -12.00% |
| Rest of Tas. | West and North West | $410 | at peak | — | 1.40% |
| Rest of SA | Barossa - Yorke - Mid North | $400 | at peak | — | 8.30% |
| Rest of SA | South Australia - Outback | $361 | at peak | — | 8.90% |
| Rest of SA | South Australia - South East | $420 | at peak | — | 6.70% |
| Rest of NT | Northern Territory - Outback | $526 | 31/05/2022 | -9.80% | -0.90% |
| Rest of NSW | Capital Region | $518 | 30/09/2022 | -5.30% | -4.40% |
| Rest of NSW | Central West | $454 | at peak | — | 2.40% |
| Rest of NSW | Coffs Harbour - Grafton | $585 | at peak | — | 1.40% |
| Rest of NSW | Far West and Orana | $404 | at peak | — | 6.60% |
Rent growth is starting to slow…
While annual growth in rents is higher than historic averages, it has broadly slowed.
In 2023, rent values rose 8.3%, down from a peak of 9.6% in the year to September 2022.
The slowdown has been most evident across regional Australia, where rents rose 4.3% last year, down from 13.4% in the year to August 2021.
The slowdown in capital city rent growth began more recently, easing from a peak of 10.6% in the 12 months to April 2023, to 9.8% by the end of the year.
As noted in previous research, growth in the CoreLogic rent value index tends to be a leading indicator of CPI rents.
This is because CoreLogic rent measures are derived from advertised rents, whereas CPI measures rents actually paid by households.
Rents paid tend to be ‘sticker’ than values, due to periodic leases (usually 12 months).
Figure 5 shows the rolling annual change in capital city rent values versus the CPI rent measure.
Historically the lag between CoreLogic and CPI rent measures has averaged six quarters, but already the monthly CPI rent indicator has shown a decline from 7.6% in September, to 7.1% at the end of November.
The slowdown in rent growth may be attributed to affordability constraints driving renters back to share housing, or to cheaper markets.
Additionally, the recent resurgence in investor activity through 2023 may be gradually helping to ease supply-side constraints.
… but increases are speeding up again in capital city house markets
The easing in rent growth is good news with regard to inflation, but there was a slight pick-up in annual growth once again in the final quarter of 2023.
This ‘re-acceleration’ in rents was most consistent across the capital city house markets but was also evident in regional rent markets.
As noted in previous quarters, part of the explanation for an uptick in house rent growth may be in part due to households re-grouping into share houses.
- Also read:Fastest growing cities in Australia 2024
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Melbourne property market forecast for 2024
- Also read:Brisbane’s property market forecast for 2024
- Also read:Sydney property market forecast for 2024
Additionally, the premium of house rents over units has narrowed in the past two years, from $63 per week at the median level to $38.
This ‘catch up’ in unit rents could be making them less appealing, diverting tenants back to houses.
Part of the explanation could also be compositional: more affordable rental markets, such as regional or outer-suburban markets, are typically higher in detached houses.
For example, some of the largest increases in annual rent growth towards the end of 2023 were house markets in Sydney’s Outer South West and the Blue Mountains.
In Perth, the North West house market saw the biggest pick-up in annual growth.
Despite the concerning reacceleration toward the end of 2023, rent growth is still expected to slow this year.
The continued increase in investment lending, a normalisation in net overseas migration, and the potential for a cash rate reduction could all contribute to a slowdown.
However, in the short term, the burden largely remains on tenants to secure cheaper housing, whether that be by re-forming share house arrangements, or once again looking to regional or outer suburban markets for rental accommodation.
