Tight rental market keeps pressure on

Whether you’re renting or investing, the rental market is sending some clear signals right now.

Cotality data shows rental conditions remain tight nationwide. Rents rose 5.2% in 2025, up from 4.8% the year before (see table below), as limited supply continues to underpin demand.

Listings tell the story. National rental listings in the December quarter were 11% lower than a year earlier and 17% below the five-year average. With fewer homes available, competition among tenants remains strong and asking rents are holding firm.

Annual change in rents, all dwellings, Australia

What this means in practice

For renters, steady rent rises can change the rent-versus-buy decision faster than expected. What feels manageable now may look different after another lease renewal, especially if wages lag.

For investors, tight vacancy supports demand and cash flow, even as borrowing costs and yields shift. The interaction between rent growth, loan structure and buffers matters more than headline yields alone.

If rising rents are making you think about housing certainty, or you’re weighing up an investment under current conditions, contact me and I’ll help you map realistic options based on today’s numbers.