After a period of cooling, rental growth has once again gathered momentum. Cotality’s latest data shows national rents increased 3.7% in the year to July 2025, marking the first acceleration in more than two years. This follows 16 straight months where growth either slowed or remained stable.

Smaller capitals are leading the charge, with Darwin rents up 7.6%, Hobart rising 5.6%, Perth 5.1%, Brisbane 4.6%, and Adelaide 4.4%. Sydney recorded a more modest 2.4% increase, while Melbourne lagged at 1.1%. Across regional Australia, rents climbed by 5.6%, with Regional Western Australia the standout performer, recording a remarkable 10.2% jump.

Cotality economist Kaytlin Ezzy says the combination of rising rents and escalating construction costs could add upward pressure on housing inflation in the coming months. “It raises the possibility that anticipated interest rate cuts could be delayed if housing pressures remain strong,” she warns.