Rent growth has slowed to its lowest rate in four years due to increased supply, but rents remain at historic highs, according to Domain’s March Quarterly report. Anglicare Australia has released a heat map displaying rental affordability across electoral districts, which reveals that Kingsford Smith, Bradfield, Sydney, and Warringah in New South Wales, and Fadden in Queensland are the five least affordable regions in the country.

Despite the slowdown in rental increases, all capital cities continue to experience record-high rents. Brisbane saw a 4.8% increase, reaching $650 per week, while Hobart rose by 3.6% to $570. Sydney witnessed a 3.35% increase, amounting to $775 per week. The national vacancy rate remains at a low 0.8%, significantly below the 3% needed for a balanced market.

Domain’s research and economics chief, Nicola Powell, commented on the data, saying that while the market is still largely favoring landlords, the increased supply is starting to slow price growth and slightly ease the tightness of the rental market. Adelaide, Hobart, and Perth have the lowest vacancy rates at 0.4%, while Sydney and Canberra follow at 0.9% and 1.2% respectively.

Anglicare Australia’s executive director, Kasy Chambers, highlighted the severe affordability issues in the rental market, noting that only 0.6% of rentals are affordable for full-time workers on the minimum wage. Chambers criticized political parties for not adequately addressing the housing crisis, arguing that voters are seeking tangible solutions rather than promises of further inaction.

Source: https://www.theguardian.com/australia-news/2025/apr/03/australia-is-a-landlords-market-rents-still-at-record-high-despite-slow-growth-report-shows