‘The slowest since late 2021’: Australian rental prices stagnate
Rent price growth slowed down in the last quarter of 2024, with only Brisbane and the ACT showing growth in the month of December.
Rental market conditions have been favouring tenants, with the median weekly rental growth dropping to 1.6 per cent nationwide in the December 2024 quarter to reach $620.
According to the latest REA Group Market Insight, rents across the country have been growing at their slowest pace since the September 2021 quarter.
Throughout 2024, national rents increased by 6.9 per cent, down from 11.5 per cent in 2023.
Nationwide, units have had a better rental price growth than houses in the last 12 months with a 7.1 per cent increase, while houses have seen their weekly rents increase slightly less by 5.9 per cent.
REA Group senior economist Paul Ryan said the slow rental growth has eased the market for renters.
“The slower pace of growth comes on the back of an increase in the number of available rentals as well as the cost-of-living pressures limiting tenants’ spending capacity,” Ryan said.
The report showed that in December, national dwelling rental in capital cities increased by 1.6 per cent over the quarter to $640 per week as all markets saw unchanged rent prices except Brisbane and the ACT.
Brisbane’s rental market has now reached a median rent of $650 for houses, representing a 1.6 per cent increase from the previous quarter, and increased by 3.5 per cent for units, reaching a median rent of $600.
While the ACT did not see a growth in median house rent prices, unit rentals saw their rents increase by 5.5 per cent from the previous quarter to $580 weekly.
“Brisbane and Canberra were the only two capital cities to see rents increase over the past three months, but Adelaide and Perth have seen the strongest increases in rents over the past year,” Ryan said
In 2024, Adelaide’s weekly rents increased by 7.4 per cent across all dwellings to $580, while Perth’s rental prices grew by 8.3 per cent to $650.
In comparison, Sydney and Melbourne, the two largest rental markets across the country, have seen their rental prices remain flat for the past six months.
Advertised rents in Sydney now reach $730 across all dwellings, and Melbourne median weekly rents are up to $570.
In regional areas, advertised weekly rents remained unchanged at $550 in the December quarter, but increased by 10 per cent over 2024 across all dwellings.
While the beginning of the year should attract more renters, Ryan said rental prices should continue to rise slowly in 2025.
“January marks the busiest time of year for the rental market, with tenants out in large numbers looking for new rental homes,” he said.
“We expect rents to increase moderately this year, with the trend of slower rent to persist throughout 2025,” Ryan concluded.