Lead

Australians are paying record high rents across all capital cities, according to reporting by ABC News. Data from property website Domain, covered by the broadcaster, revealed a renewed acceleration in rental growth, with combined capital city house rents increasing by $20 over the June quarter and annual growth at its strongest pace in almost two years. Unit rents rose by a more modest $5, underlining a growing gap between the two rental markets.

ABC News also carried figures from realestate.com.au's Market Insight report showing the national median weekly advertised rent grew 3.1 per cent over the June quarter to a new high of $670. The same report pushed national median rents up 6.4 per cent over the year, with renters paying $12,480 more in June 2026 on average nationally compared with five years ago.

Coverage comparison

The two ABC News reports present slightly different angles on the same underlying Domain data. One report focused on the national picture, describing a "landlord's market" and pointing to low vacancy rates, strong population growth and affordability barriers as key drivers. The other report zeroed in on Sydney, striking a mixed note with some suburbs showing sharp rent rises while others recorded substantial falls.

Both reports quoted Domain's chief residential economist Nicola Powell. In the national-focused article, Powell said renters were "operating in a landlord's market," citing strong population growth, insufficient rental supply, an undersupply of housing and affordability barriers for tenants transitioning to home ownership.

In the Sydney-specific piece, Powell noted that the sharp rental increases in certain suburbs were too sudden and concentrated to be explained by seasonal factors. Neither report disputes the underlying upward trend, but the Sydney piece highlights unusual decreases in parts of the city.

Key claims

  • Sydney house rents surged by 6.3 per cent, or $50, over the quarter to a record $850 per week, the largest quarterly increase among all capital cities and Sydney's strongest result since 2022, according to Domain data reported by ABC News.
  • Sydney unit rents rose by an average of 4 per cent ($30) to a record $780 per week, marking the largest quarterly increase in three years, as reported by ABC News.
  • Among Sydney suburbs, Abbotsford recorded a 41.3 per cent increase in median weekly asking rent for houses over the year, according to Domain data reported by ABC News. Milperra rose 29.4 per cent and Monterey 28.9 per cent.
  • Conversely, Artarmon recorded a 13 per cent annual decrease in the median weekly asking rent for houses, with smaller unit declines in Northbridge (6.3 per cent) and Pagewood (4.5 per cent), as reported by ABC News.
  • Realestate.com.au data, as reported by ABC News, put the national median weekly advertised rent at a record $670 in the June quarter, up 3.1 per cent over the quarter and 6.4 per cent annually.
  • Annual growth for Melbourne units slowed to a four-and-a-half-year low, according to Domain figures referenced by ABC News.

Perspectives

Nicola Powell (Domain): Powell attributed rising rents to an amalgamation of forces: strong population growth, insufficient rental supply, an undersupply of housing, and affordability barriers for potential home buyers. She described the situation as a "landlord's market" and noted that the sharp increases in certain Sydney suburbs were too sudden to be seasonal.

Matthew Bowes (Grattan Institute): ABC News reported that Bowes commented on the need for a concerted effort by governments to improve supply. Bowes's remarks echo the broader concern about the structural imbalance between rental demand and housing availability raised by Powell.