August 6th, 2026
July 2026 housing update: Australia’s housing downturn spreads beyond Sydney and Melbourne
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Australia’s rental market remained tight in July, with the national vacancy rate holding steady at 1.3%, according to SQM Research. While the number of available rental properties increased over the month, national asking rents continued to rise, sitting 7.2% higher than this time last year.
The national figures only tell part of the story, however. Rental conditions continued to vary significantly between the capitals, with five cities recording vacancy rates below 1%. Darwin and Hobart also continued to see some of the strongest rental growth, while Sydney and Canberra had comparatively more rental stock available.
City-by-city
Sydney
Rental availability in Sydney improved slightly, with the vacancy rate rising to 1.7% and 12,782 properties available for rent, the highest number among the capital cities.
Asking rents moved in the opposite direction, falling by 0.5% over the month to $914 per week. Despite the dip, rents remain 6.3% higher than a year ago.
Melbourne
Melbourne also saw a modest increase in rental availability, with the vacancy rate rising from 1.6% to 1.7%.
Combined asking rents edged up by 0.2% over the month to $695 per week and are now 6.0% higher year-on-year.
Brisbane
Competition for rentals remains high in Brisbane, where the vacancy rate held at 0.9%.
Asking rents continued to climb, rising by 1.0% over the month to $756 per week. They’re now 8.3% higher than a year ago.
Perth
Perth remains one of Australia’s tightest rental markets, with a vacancy rate of just 0.6% and 1,241 properties available. While rental availability remains limited, the vacancy rate is slightly higher than the 0.7% recorded this time last year.
Combined asking rents increased by 0.9% over the month to $804 per week, bringing annual growth to 6.6%.
Adelaide
Adelaide’s rental market tightened further in July, with the vacancy rate falling from 0.7% to 0.6%. Just 1,035 dwellings were available, compared with a 0.8% vacancy rate a year ago.
Asking rents fell by 0.3% over the month to $642 per week, although they remain 3.5% higher year-on-year.
Canberra
Canberra recorded the highest vacancy rate of the capital cities in July, with the rate rising to 1.8% from 1.7%. There were 1,086 available dwellings, up from the 1.5% vacancy rate recorded a year earlier.
Despite the increase in availability, asking rents fell by 1.0% over the month to $705 per week, 5.4% higher than a year ago.
Darwin
Darwin continues to stand out as Australia’s tightest rental market. The vacancy rate held at just 0.3%, with only 67 dwellings available.
Rents continued to rise sharply, increasing 2.0% over the month to $728 per week. They’re now 14.1% higher than a year ago, the strongest annual growth of any capital city.
Hobart
Hobart also remains firmly in tight-market territory, with the vacancy rate falling to 0.6% and just 162 dwellings available.
Combined asking rents rose 1.6% over the month to $607 per week, with annual growth reaching 12.2%. This continues to put Hobart among the capitals with the fastest rental growth.
Asking rents remain elevated
National asking rents increased 0.2% over the past 30 days to $698 per week and are now 7.2% higher than a year ago. While monthly growth has slowed, this may partly reflect the usual winter lull in rental activity.
The national picture also differs between property types. House rents fell by 0.6% over the month but remain 6.8% higher year-on-year, while unit rents increased by 1.3% and are now 7.7% higher than a year ago.
With vacancy rates still below 1% in five capital cities and rents continuing to rise in many markets, rental conditions remain challenging for tenants. The increase in available stock is a positive sign, but it has yet to translate into a broad easing of rental pressure.
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.
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