Rental affordability continues to be a significant issue, with households allocating a larger share of income to rent. Recent data shows national rents increased by 2.1% in the three months to March 2026.

Cotality data indicates that households are now spending around 33.1% of gross median income on rent, up from 26.2% in September 2020. This represents a notable increase over time and suggests that rent growth has outpaced income growth.

The average weekly rent burden has increased by approximately $202 over that period. While individual circumstances vary, this highlights the growing financial pressure on renters.

Cotality’s head of research, Gerard Burg, has noted that rental growth moderated during parts of 2024 and 2025 but has since picked up again due to ongoing supply constraints. This reflects the broader trend seen in vacancy data.

Rent increases differ across cities. Darwin recorded a 9.2% annual rise to $699 per week. Perth and Brisbane both increased by 6.7%, reaching $761 and $720 respectively. Hobart rose 6.4%.

Sydney remains the most expensive capital at $824 per week, followed by Canberra at $696, Adelaide at $646 and Melbourne at $632. These figures show both cost differences and varying growth rates between cities.

While rising rents can support investor returns, they also present challenges for tenants. Higher housing costs can limit savings, reduce financial flexibility and increase overall cost-of-living pressures.

It is also important to note that rental affordability varies widely depending on income, household size and location. National averages provide a useful guide but do not capture every individual situation.

The current data points to a market where affordability pressures remain elevated. Future movements will depend on factors such as housing supply, wage growth and broader economic conditions.