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Can you believe another quarter has come and gone? Us neither. To mark the occasion, we’re back with your quarterly rental market update, and this time, there’s a little good news for renters.
According to Domain’s September Quarter 2026 Rent Report, rental prices have stalled across most Australian capital cities, despite ongoing shortages of available properties. Combined capital city house rents held steady at $700 per week, while unit rents rose by $10 to $690. Although annual rent growth remains positive at 7.7 per cent for houses and 6.2 per cent for units, much of that increase reflects price hikes earlier in 2026.
For Melbourne renters, the latest figures bring a pause in rental price growth, rather than a drop in prices. According to Domain, median weekly asking rents for both houses and units held at $600 in the September quarter. House rents rose 3.4 per cent over the past year, from $580 to $600 a week, while unit rents increased 4.3 per cent, from $575 to $600. Both remain at record highs, meaning renters are still paying historically high asking prices, even if rents haven’t risen since June.
Melbourne's rental vacancy rate also edged up from 1.2 per cent in June to 1.4 per cent in September, matching the rate recorded a year earlier. And although that's a slight improvement for house-hunters, it still points to a tight market with limited options for prospective tenants.
Melbourne isn't alone in seeing rental growth hit pause. According to the report, Brisbane, Adelaide and Perth also recorded no quarterly change in house or unit rents, despite some of the country's lowest vacancy rates and fewer rental properties available than a year ago. This challenges the long-held relationship between tight rental supply and rising prices, suggesting renters' capacity to absorb further increases is becoming a bigger factor.
Domain chief residential economist Dr Nicola Powell said the figures suggest affordability is increasingly acting as a ceiling on rental growth, even as rental supply remains severely constrained.
“Headline annual growth figures still look strong, but much of that reflects rent increases recorded earlier in the year,” Powell said. “Australia's rental shortage hasn't disappeared, but it's no longer translating into higher rents everywhere.”
Elsewhere, Sydney and Canberra were the only capitals to record quarterly declines in house rents. Sydney prices fell by 0.6 per cent, or $5, to $835 per week, marking the first drop since December 2024. Canberra house rents dipped by 1.4 per cent, or $10, to $700 per week.
Meanwhile, Darwin bucked the national trend, recording the strongest rental growth of any capital. House rents climbed 5.3 per cent, or $40, to a record $800 per week, and unit rents rose 0.4 per cent to $650. Hobart was the only other capital to record any rental growth, with unit rents increasing one per cent to a record $525 per week, while house rents remained steady at $625.
So although Melbourne's rental market isn't exactly getting cheaper, the latest figures suggest the relentless price hikes may be taking a breather. You can check out the full report over here.
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