Overview
- National rents rose 43.9% in the five years to September 2025 while wages gained 17.5%, lifting the average rent burden to a record 33.4% of pre‑tax income.
- Annual rental growth re‑accelerated to about 5.4% in the year to January 2026 after a mid‑2025 lull, with increases recorded across every capital and regional market.
- Western Australia posted the steepest five‑year rise at 66% versus 18.5% wage growth, with Perth up 6.2% over the year to January and regional WA up 10.1%.
- The ACT was the outlier with rents up 18.5% over five years versus 17.8% wage growth, a result linked by analysts to stronger new supply and its 2019 rent‑increase cap on ongoing tenancies.
- Advocacy groups are urging rent stabilisation and an extension of WA’s rent relief program beyond June 2026, while the RBA’s 3.85% cash rate and analysts’ forecasts highlight a supply shortfall unlikely to ease quickly.