The Australian rental market is showing signs of cooling, with national median rents growing at a significantly slower pace compared to the previous year’s surge.
According to REA Group’s latest Rental Report, national median rents increased by 6.9 per cent to $620 per week in December 2024, marking a substantial decline from the nearly 20 per cent growth recorded in 2023.
New rental listings have shown promising signs of improvement, with a 4.6 per cent increase in the second half of 2024 compared to the same period in 2023, representing the most active second half since 2020.
The country’s largest rental markets have started to stabilise, with both Sydney and Melbourne recording no changes in the December quarter, maintaining median rents of $730 and $570, respectively.
REA Group Executive Manager of Economics Angus Moore, said there has been a significant shift in market dynamics. “Over 2024, we saw rental price growth slow and the availability of properties improve, indicating that conditions are gradually beginning to ease for renters,” Mr Moore said.
Perth and Adelaide have emerged as the strongest performing markets, with Perth leading rental price growth at 8.3 per cent and Adelaide following at 7.4 per cent. Adelaide’s median weekly rent of $580 has now surpassed Melbourne’s $570, while Perth at $650 has moved ahead of Brisbane’s $630.
Regional areas continue to outperform capital cities, with regional rents climbing 10 per cent to reach $550 per week, compared to capital cities’ more modest 6.7 per cent growth to $640.
The market has shown signs of moderating demand, with the median days on market increasing slightly from 19 to 20 days, while average enquiries per listing have decreased from 24.1 to 19.5 nationally.
“Despite some easing of rental pressures, the market remains far tighter than pre-pandemic levels, and availability is still strained,” Mr Moore said. “Rents are expected to keep rising in 2025, though at a more moderate pace.”