Rental growth picked up pace again in the first quarter of 2024 with combined capital house rents up by 5% ($30).

The latest Domain Rental Report shows the increase was the largest quarterly rise in 17 years and the second highest on record.

It says the supply-demand imbalance is still clearly placing pressure on rents.

Despite the increases the pace of growth is slowing – rising three times slower than in the March quarter of 2023 and annual gains are the slowest since June 2022.

The report says there are record asking rents in most capital cities with the exception of Canberra houses and Hobart units.

House rents increased the most in Adelaide (5.4%) during the quarter, followed by Perth (4.8%), Melbourne (3.6%), Brisbane (3.3%) and Sydney (2.7%). House rents were up by 0.7% in Canberra and there is no change in Darwin or Hobart.

Rents were up for units in most capital cities with the exception of Canberra and Darwin.