Australians face record high rents as agents see 'inquiries flooding in'

Domain says there has been renewed acceleration in rental growth across Australia's capitals. (ABC News: Gian De Poloni)

Domain's latest rental market report has revealed a renewed acceleration in rental growth across Australia's capital cities.

Combined capital city house rents increased by $20 over the June quarter, lifting annual growth to its strongest pace in almost two years.

The rental market is expected to remain tight in coming months as government policy changes, low supply and interest rates affect rental affordability.

Australians are paying record high rents across all the capital cities as low vacancy rates mean tenants are facing "a landlord's market".

Data from property website Domain has revealed a renewed acceleration in rental growth across the capitals, led by Sydney's strongest quarterly increase in four years.

Combined capital city house rents increased by $20 over the June quarter, taking annual growth to its strongest pace in almost two years, according to Domain's June Quarter 2026 Rent Report.

Unit rents rose by a more modest $5, highlighting a growing divergence between the two rental markets.

Sydney recorded its largest quarterly rent increase in four years, with house rents up $50 to a record $850 a week.

Brisbane house rents rose $20 over the quarter to a record $700 a week.

Darwin overtook Perth as Australia's second most expensive rental market for houses and recorded the strongest annual rental growth.

Domain chief retail economist Nicola Powell said renters were "operating in a landlord's market".

Nicola Powell says renters are operating in a landlord's market. (ABC News: Adam Griffiths)

Separate figures from realestate.com.au's Market Insight report showed, over the June quarter, the national median weekly advertised rent grew 3.1 per cent to sit at $670 — a new high.

Annually, it pushed national median rents up 6.4 per cent over the year, realestate.com.au said.

It found renters were paying $12,480 more in June 2026, on average nationally, compared to five years ago.

With vacancy rates near record lows nationally, and housing supply remaining constrained, tenants are expected to face more challenging rental conditions, the Domain report noted.

The findings are unsurprising to real estate agent Tanja Cosic, who sees the demand for rentals daily.

"As soon as we list the property online, that ad automatically gets passed on to our database and the inquiries start flooding in," she told The Business.

Tanja Cosic says inquiries start flooding in as soon as she lists a rental property. (ABC News: Daniel Ir