Vacancy rates across Australia remain critically low at 1.2%, according to SQM Research, with just 37,742 dwellings listed as vacant in August. The national figure barely moved month-to-month, dropping by only 121 properties compared with July.

Capital city vacancy rates vary but remain tight across the board. Sydney fell from 1.5% to 1.4%, while Hobart dropped from 0.6% to 0.5%. Canberra and Brisbane recorded small increases, at 1.6% and 1.0% respectively. Rates were steady in Melbourne (1.8%), Adelaide (0.8%), and Darwin (0.5%).

SQM Research Managing Director Louis Christopher says the lack of rental supply continues to push rents higher. “Hobart and Darwin stand out with double-digit annual rent growth, driven largely by demand for units,” he says.

Nationally, rents increased by 0.4% in August, lifting annual growth to 4.6%. Unit rents are now outperforming houses in most capital cities, reflecting affordability pressures and changing lifestyle preferences.

Christopher says the broader outlook remains one of tight conditions. “Vacancy is holding well below average, demand is unrelenting, and supply pipelines are under strain. Unless we see a surge in new stock, the pressure on renters will persist.”