While price growth has been headline news, renters are facing their own challenges. A new CBRE outlook forecasts that by 2030, 92% of two-bedroom apartments in capital cities will be renting for more than $700 per week, and a third will pass the $1,000 per week mark.

Vacancy rates, already tight at 1.8% in 2025, are projected to drop further to just 1.1% by 2030—well below the long-term average of 2.5%. These conditions are set to persist as demand continues to outstrip supply.

Construction costs and the push for higher-quality amenities are also adding pressure to rental prices. Supply, meanwhile, isn’t keeping pace. Australia needs around 75,000 new apartments per year, but current forecasts suggest only 60,000 annually will be delivered over the next five years.

The shortfall is most pronounced in Sydney, which needs 30,000 units a year but is likely to build just 11,700. Melbourne requires 38,000 but will get closer to 9,000, while Brisbane needs 16,000 but will deliver only about 4,600.

Data from Cotality shows unit rents are already outpacing house rents, reflecting the shortage of multi-unit supply relative to demand.