February 19th, 2026
January 2026 rental snapshot: a tighter start to the year for rent rolls
Industry News
Article by
Australia’s rental market tightened again in February. The national vacancy rate fell to 1.1%, down from 1.2% in January, according to SQM Research’s latest data.
With fewer properties available to rent, prices continued to move up in many parts of the country. Nationally, average rents across houses and units reached $688 per week, up by 1.0% over the past month and 6.6% year-on-year. While the national trend remains upward, conditions vary across the capitals, with some markets still tightening and others beginning to stabilise.
Sydney
Sydney’s vacancy rate fell to 1.3% in February, down from 1.5% in January, signalling tighter rental supply across the city.
Rents continue to trend higher as a result. The average combined rent reached $906 per week, rising by 0.5% over the past month and 7.3% over the past year. House rents remain the strongest driver, averaging $1,145 per week with 9.2% annual growth.
Melbourne
Melbourne’s vacancy rate edged down slightly to 1.6% in February, compared with 1.7% in January, showing a gradual tightening in rental supply.
Combined rents now average $678 per week, up by 0.8% over the past month and 5.0% over the past year. Growth remains steady across both houses and units as demand continues to absorb available stock.
Brisbane
Brisbane remains one of the tightest rental markets in the country, with vacancy falling to 0.8% in February.
Limited supply continues to support rent growth. Combined rents sit at $730 per week, rising by 0.6% over the past month and 8.0% over the past year, with houses leading the gains.
Perth
Perth’s vacancy rate held at 0.6% in February, keeping it among the tightest rental markets in Australia.
Combined rents reached $797 per week, increasing by 1.3% over the past month and 5.5% over the past year as strong demand continues to meet limited supply.
Adelaide
Adelaide’s vacancy rate sits at 0.8% in February, slightly higher than a year ago but still indicating a very tight rental market.
Rent growth has been more moderate compared with other capitals. Combined rents average $637 per week, up by 0.3% over the past month and 2.8% over the past year.
Canberra
Canberra’s vacancy rate improved to 1.1% in February, indicating slightly more rental supply compared with earlier in the year.
At the same time, rents have softened. Combined rents average $669 per week, down by 2.5% over the past year. Notably, house rents saw the largest adjustment, falling by 5.5% in the past year.
Darwin
Darwin’s vacancy rate fell sharply to 0.6% in February, reflecting a tightening rental market.
Combined rents now average $673 per week, rising 1.9% over the past month and 12.7% over the past year, making it one of the strongest performing rental markets nationally.
Hobart
Hobart’s vacancy rate remains extremely tight at 0.5%, despite a slight increase from January.
Rents continue to rise as a result. Combined rents average $591 per week, a strong 2.9% jump over the past month and 12.2% over the past year. Unit rents showed particularly strong growth, surging by 4.0% in the past month alone.
What this means for the months ahead
With the vacancy rate sitting so close to 1% nationally, rental supply is still very tight across most of the country.
For agencies, it’s more important than ever to closely monitor local market conditions in the months ahead. In tighter markets, the challenge is often managing such strong tenant demand. In markets that are starting to loosen, the focus may shift back to pricing strategy and keeping properties competitive.
Disclaimer: The information enclosed has been sourced from SQM Research and is provided for general information only. It should not be taken as constituting professional advice.
PropertyMe is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
We link to external sites for your convenience. We are selective about which external sites we link to, but we do not endorse external sites. When following links to other websites, we encourage you to examine the copyright, privacy and disclaimer notices on those websites.
