Rental Market Trends in Australia: What First-Time Renters Need to Know

Vacancy Rates Are Slowly Easing, But Still Low

Australia’s national vacancy rate has hovered around 1.2 to 1.3 percent in mid-2025, according to SQM Research. Although this is slightly higher than last year, the competition for rentals remains strong, especially in cities like Perth, Adelaide, and Brisbane where rates are under one percent.

That means renters need to move quickly and apply with confidence, especially when applying through public platforms like realestate.com.au or Domain.

Rents Are Still Increasing, But Not as Quickly

Rental price growth has slowed in many areas, although rents are still high. According to the May 2025 Rent.com.au Snapshot, asking rents have risen just over five percent compared to the previous year. This is a significant drop from the double-digit rises seen in 2022 and 2023.

However, affordability is still a concern. In some cities, renters need to earn over $130,000 per year to comfortably afford a one-bedroom unit. That’s why budgeting properly before renting is crucial. How Much Money Should You Save Before Renting in Australia? breaks this down step by step.

Regional Areas May Offer Better Value

While capital cities remain competitive, regional areas like Ballarat, Newcastle, and parts of Tasmania are attracting more renters due to better availability and lower prices. Some regional towns have also benefited from recent infrastructure upgrades, increasing their appeal.

If you're willing to expand your search, you may find a more spacious or better-maintained property at a more affordable rate.

Apartment Shortages Will Continue

CBRE’s 2025 report forecasts that apartment supply will continue falling short of demand, especially in Sydney, Brisbane, and Melbourne. Investors are hesitant to build due to high interest rates, meaning vacancy pressures will remain in the unit market for the foreseeable future.

This trend affects renters looking for affordable one-bedroom or studio properties. Acting quickly and having a polished application is more important than ever. What Real Estate Agents Look for in a Rental Application (2025 Edition) outlines exactly how to stand out.

What This Means for First-Time Renters

If you're new to renting in Australia, the current market conditions mean you need more than just good luck. Here’s what to do:

• Have your documents ready in advance

  Don’t wait until you fall in love with a property. Get your ID, payslips, and references organised ahead of time so you can apply the same day as the inspection.

  
  

• Be flexible on location and timing

  Mid-year and late-year periods often offer more availability than January to March. Suburbs just outside the city may also have less competition.

  
  

• Use a strong support system

  Find My Home supports renters who may not have Australian rental history by preparing full application packages, submitting to trusted agencies, and helping you get noticed for the right reasons.

Final Thoughts on Rental Market Trends in Australia

Australia’s rental market trends in Australia in 2025 show conditions are still tight, but the sharpest price increases have started to ease. Vacancy rates remain low in major cities, while regional areas and outer suburbs may offer more affordable options. Being prepared, applying early, and avoiding common application mistakes are the best ways to improve your chances.

If you're struggling to get approved or want someone to handle the process for you, Find My Home is designed to help renters like you secure a place faster and with less stress.