National median rent rises to $650 per week amid tight supply
Rental prices across Australia reached new record highs in December 2025.
A new report from PropTrack reveals the national median weekly rent rose 1.6% over the quarter to reach $650.
This represents a total annual increase of 4.8% compared to the previous year.
While the pace of growth has slowed slightly compared to previous years, the relentless rise continues to pressure tenant budgets.
Unit rents drove much of the growth, jumping 6.7% annually compared to a 3.2% rise for houses.
Capital city breakdown
Sydney remains the country's most expensive rental market with a median weekly rent of $760.
Perth has seen some of the most dramatic shifts, with vacancy rates remaining critically low at just 0.7%.
Melbourne and Hobart are currently the most affordable capitals, with medians of $575 and $573 respectively.
Interestingly, Melbourne was the only capital to record a slight annual decline in house rents, dropping 0.9%.
However, Melbourne remains the only capital city with a vacancy rate sitting at or above 2.0%, offering slightly more choice for tenants than other major cities.
Regional markets have not been spared, with rents in the Northern Territory surging by 9.8% over the year. This data aligns with recent reports that rental pressures are mounting as vacancy rates hit new lows.
Implications for investors
Despite the rising costs for tenants, the tight market continues to attract landlords.
Investor activity has remained robust as high yields and low vacancy rates provide a safety net against higher mortgage costs.
The persistent supply shortage suggests that rental conditions will remain tight well into 2026. This environment supports findings that investor share in the property market remains high, driven by the potential for strong returns.
With construction costs still high and new dwelling approvals lagging, there is little relief on the horizon for supply levels.
Brokers working with investors should highlight the strong yield potential in the unit market, particularly in Sydney and Brisbane.
