May 2026 rental snapshot: renters continue to compete while buyers gain options

Article by Alison Cheung Communications Manager 19 June 2026

Two very different stories are playing out in Australia’s property market right now. Buyers are finding more stock on the market. Renters are finding the opposite, with vacancies near record lows and rents still climbing. 

The national vacancy rate held steady at 1.2% in May, unchanged from both April and the same time last year, according to SQM Research. Although rental listings increased across several capital cities during the month, the rise largely reflects seasonal patterns rather than a significant improvement in supply. 

The imbalance continues to support rental growth, with national advertised rents increasing by 7.8% over the past 12 months. The average combined rent reached $700 per week nationally and $797 per week across the capital cities. 

Every capital city recorded a vacancy rate below 2% in May, while Brisbane, Perth, Adelaide, Darwin and Hobart all remained below 1%.

City by city 

Sydney

Sydney’s vacancy rate rose from 1.3% to 1.5% in May. With the number of vacancies at 10,820, Sydney has the highest number of available homes for rent. 

Combined house and unit rents eased by 0.1% in the 30 days to 12 June but landlords still saw average rents surge by 7.6% in the past 12 months, to $919 per week. 

Melbourne

Melbourne’s vacancy rate increased slightly to 1.6% in April. While Melbourne remains the most balanced rental market among the major capitals, there were fewer available rental homes compared to a year ago. 

Rental prices continued to climb, with combined weekly rents increasing by 0.8% over the month to $694. 

Brisbane

The vacancy rate in Brisbane’s rental market inched up marginally from 0.8% to 0.9%. 

While vacancy rates have edged higher from the record lows seen earlier in the cycle, Brisbane’s rental market remains highly competitive. Strong demand still drove rental growth, with combined weekly rents up by 0.8% in the past month to $746.  

Perth

While Perth’s vacancy rate increased from 0.6% to 0.7%, supply still remains extremely limited relative to demand. 

Rental prices reflected those tight conditions, with combined rents rising by 1.0% over the month to $809 per week. This makes Perth the second most expensive capital city to rent, sitting just behind Sydney. 

Adelaide

Adelaide’s vacancy rate held at 0.7% in May with supply still struggling to keep pace with demand. 

Combined weekly rents increased by 0.1% over the month and 4.9% annually to $642. When looking at annual performance, unit rents (+6.2%) continued to outperform houses (+4.3%), highlighting ongoing demand for more affordable rental options. 

Canberra

Canberra’s rental market saw an increase in available homes, with vacancy rates rising from 1.4% to 1.6%.  

Despite the increase, rents still went up to $705 per week. Combined rents rose by 0.1% during the month and 4.5% over the year, suggesting rental demand remains relatively stable across the nation’s capital. 

Darwin

Darwin once again recorded the lowest vacancy rate in the country, holding steady at just 0.3% in May. With only 75 rental properties available, the city’s rental market remains exceptionally tight for renters. 

Strong competition for a small pool of homes is contributing to rising rents. Combined weekly rents surged by 5.1% during the month and 14.0% over the year to $721, making Darwin the strongest-performing rental market nationally for both monthly and annual rental growth. 

Hobart

Hobart’s vacancy rate increased slightly from 0.5% to 0.6%, although rental supply remains among the most constrained in Australia. Only 161 properties were available for rent during May. 

While combined rents fell slightly by -0.1% to $612 per week, the market recorded 12.3% rental growth compared to a year ago.

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.   

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