Rental returns continue to rise

This week, I thought we should take a look at the most recent trends in the property rental market, so that rental providers and renters can all gain a clearer picture of what’s been happening.

Now I should point out that gaining clear insights on rental data on a suburb-by-suburb basis is far more difficult as trusted sources of data are much harder to access. However, I came across some data from Cotality (formerly Corelogic) that provides some clear insights into what has been happening across the nation.

Cotality’s analysis of the rental market to the end of 2025 suggests that median rents in Australia rose 1.3 percent between October and December last year, making the annual growth rate 5.2 percent. This compares with an increase of 4.8 percent recorded in 2024.

National median rents hit $681 per week at the end of the year. This figure was a rise of $204 per week over five years, which is a total increase of more than 42 percent since the end of 2020.

One of the driving factors in these rises is the tightening of vacancy rates which hit 1.7 percent in the December quarter. The supply of rental properties was down 11 percent year-on-year and 17 percent below the five-year average.

Figures like these are a double-edged sword. Not only do we see increased cost-of-living impacts for renters, but they also factor into the inflationary equation that the Reserve Bank will be weighing up when deciding on future movements in official interest rates as well.

As I said in LAST WEEK'S POST, it’s important that anyone wanting to make informed decisions about your property plans for the year ahead gets accurate figures to base those decisions on. So don’t hesitate to give us a call this week at Barry Plant Thomastown on 9466 3233 if you’d like to talk through your options.

In the meantime, I hope you have a relaxing and enjoyable long weekend.

Best wishes,

Con Constantinou

Barry Plant Thomastown