For many, the dream of owning a home has often given way to the reality of renting in an increasingly unforgiving market.
But recent figures suggest that there may be a light at the end of the tunnel for renters, as the relentless surge in rental prices shows signs of slowing down. However, before you celebrate, it’s important to understand that while the peak of rental growth may be behind us, the housing crisis is far from over.
In the past year, median rents across the country climbed by 6.9 per cent, setting a new median price of $620 per week. This increase, while still significant, is a step down from the nearly 20 per cent annual growth experienced in 2023.
According to PropTrack’s latest figures, this deceleration offers a glimmer of hope for renters who have been grappling with skyrocketing costs.
REA Group’s executive manager of economics, Angus Moore, has shed light on the situation, stating, ‘Despite some easing of rental pressures, the market remains far tighter than pre-pandemic levels, and availability is still strained.’
‘Rents are expected to keep rising in 2025, though at a more moderate pace,’ suggesting that while the worst of the hikes may be over, renters should still brace for increases, albeit at a gentler gradient.
Moore explained that the slowing of national rental price growth has been attributed to a cooling off in the capital city markets over the past year.
In contrast, regional rent growth has outpaced that of the capitals, with availability becoming even more constricted. This trend is particularly concerning for those living in regional areas, where the rental market has traditionally been more affordable.
On a positive note, the number of newly advertised rental properties was 4.1 per cent higher than a year ago, offering 9.5 per cent more options for renters. This increase in supply could be a contributing factor to the easing of rental price growth.
However, the increases in rental prices nationally continue to outpace both headline inflation, which was 2.4 per cent for the 12 months until 31 December, and wage growth, which stood at 1.8 per cent for the six months until May 2024.
This disparity highlights the ongoing struggle for renters, whose incomes are not keeping pace with the rising cost of living.

PropTrack adds that the demand for rental properties has slightly decreased over the year, with the median days on the market increasing from 19 days in December 2023 to 20 days in December 2024.
Meanwhile, the rental landscape in Sydney and Melbourne has remained stagnant, with no changes in rents over the last two quarters. Sydney’s rental prices have held steady at $730 per week, while Melbourne’s average is $570.
However, as these cities plateau, Perth and Adelaide have seen significant increases, with weekly rental prices rising by 8.3 per cent and 7.4 per cent, respectively. This has resulted in median prices in Adelaide and Perth now exceeding that of Melbourne, at $650 and $580 per week, respectively.
In conclusion, while the latest figures offer a glimmer of hope for renters, the reality is that the rental market remains challenging. The easing of rental price growth is a welcome development, but with costs still rising and availability tight, particularly in regional areas, renters must remain vigilant and proactive in managing their housing situations.
We at YourLifeChoices encourage our readers to share their experiences and strategies for navigating the rental market. Have you noticed a change in rental prices in your area? What are your tips for finding affordable housing in this competitive market?
Join the conversation in the comments below and let’s support each other through these trying times.
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The amount of rent one pays and how much it increases is dependent on where you live. A shack in whoop whoop is a lot less to rent than a 4 bed house in Vaucluse and the rate of increase and frequency varies accordingly. The median rental price is completely misleading.
Factors: house/unit/size/location/condition.