Rental supply still constrained across most capitals in February
Australia’s rental market tightened again in February, with the national residential vacancy rate easing to 1.1%, according to new data from SQM Research.
The figure was down from 1.2% in January 2026 and lower than the 1.3% recorded in February 2025. SQM counted 34,572 vacant rental dwellings nationwide, signalling fewer available listings as demand continued to absorb stock.
SQM said its vacancy measure is based on online rental listings advertised for three weeks or more, assessed against the number of established rental properties.
Among the mainland capitals, Sydney and Melbourne both recorded declines in vacancy.
| Vacancy Rates - February 2026 | ||||||
|---|---|---|---|---|---|---|
| City | February 2025 | January 2026 | February 2026 | |||
| Vacancies | Vacancy Rate | Vacancies | Vacancy Rate | Vacancies | Vacancy Rate | |
| Sydney | 11155 | 1.5% | 10987 | 1.5% | 9491 | 1.3% |
| Melbourne | 9326 | 1.8% | 9197 | 1.7% | 8294 | 1.6% |
| Brisbane | 3445 | 1.0% | 3339 | 0.7% | 3002 | 0.8% |
| Perth | 1201 | 0.6% | 1153 | 1.6% | 1130 | 0.6% |
| Adelaide | 1070 | 1.1% | 277 | 1.1% | 1203 | 0.8% |
| Canberra | 961 | 0.6% | 174 | 0.6% | 688 | 1.1% |
| Darwin | 1216 | 0.8% | 195 | 0.8% | 144 | 0.6% |
| Hobart | 870 | 0.4% | 112 | 1.4% | 132 | 0.5% |
| National | 38427 | 1.3% | 37630 | 1.2% | 34572 | 1.1% |
| Source: SQM Research | ||||||
Sydney’s vacancy rate fell to 1.3% in February from 1.5% a month earlier, with 9,491 dwellings available. Melbourne’s rate tightened to 1.6% from 1.7%, with 8,294 vacancies.
Brisbane remained one of the country’s tightest markets, with vacancies edging down to 0.8% from 0.9% and 3,002 dwellings available. Perth held steady at 0.6%, with 1,130 vacancies, while Adelaide was unchanged at 0.8%, with 1,203 dwellings listed as vacant.
Canberra recorded a sharper drop, with its vacancy rate sliding to 1.1% from 1.4% and vacancies falling to 688. Darwin’s vacancy rate declined to 0.6% from 0.8%, with 144 dwellings available. Hobart’s vacancy rate ticked up to 0.5% from 0.4%, with 132 vacancies, though it remained tight by historical standards.
Source: SQM Research
Advertised rents continued to rise into early March, SQM said, with combined rents up 1% over the past 30 days and 6.6% higher than a year earlier.
The national combined advertised rent average was $688.76 per week. Across the capitals, the average was higher at $782.57 per week, reflecting increases in both house and unit asking rents.
SQM also reported that house rents rose 1.6% over the month and 7.8% over the year, while unit rents increased 0.1% month-on-month and 4.6% annually.
In Sydney, combined rents increased 0.5% over the month and 7.3% over the year. SQM reported that house rents were driving the lift, with houses averaging $1,145.45 per week.
Melbourne’s combined rents rose 0.8% month-on-month and 5.0% year-on-year, while Brisbane posted a 0.6% monthly rise and an 8.0% increase over the year. Perth recorded a 1.3% rise over the month and a 5.5% lift over the year.
Elsewhere, Adelaide’s combined rents increased 0.3% over the month and 2.8% over the year, with house rents averaging $690.13 per week. Canberra was the outlier, with combined rents down 1.1% over the month and 2.5% over the year. Darwin and Hobart recorded the strongest annual gains, up 12.7% and 12.2% respectively, with both also posting notable monthly increases.
“The national vacancy rate falling to 1.1% shows the rental market remains very tight across most of the country,” said Louis Christopher (pictured right), managing director at SQM Research. “While some seasonal tightening is expected at this time of year, demand for rental housing is clearly continuing to outstrip available supply and so this move goes beyond normal seasonality.
“Vacancy rates below 1% in cities such as Brisbane, Perth and Darwin highlight just how constrained rental supply remains in parts of Australia. With advertised rents continuing to accelerate higher, the data suggests tenants are still facing strong competition for available properties.
“Without a meaningful lift in new housing supply and an easing in demand, rental pressures are likely to remain a feature of the market through much of 2026, which may feed into the CPI.”
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