Authored by the expert who managed and guided the team behind the Australia Property Pack
Everything you need to know before buying real estate is included in our Australia Property Pack
Looking for current rental prices in Australia? This guide breaks down everything you need to know about rents across the country.
We update this blog post regularly so you always have access to the freshest data on Australia's rental market.
Below you'll find typical rents by apartment size, neighborhood comparisons, tenant demand indicators, and landlord costs in Australia as of 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Australia.
Insights
- Rents in Australia are quoted per week, not per month, so you need to multiply by 4.33 to get your actual monthly cost, which catches many newcomers off guard.
- The national vacancy rate in Australia sits at just 1.3% in early 2026, meaning tenants face stiff competition and landlords can be selective.
- Rental properties in Australia typically get leased within 17 days of listing, though prime inner-city units can go in under a week.
- Houses in Australia are seeing faster rent growth than apartments, with year-over-year increases around 5% nationally as families compete for limited stock.
- The gap between advertised asking rents and actual rents paid in Australia is significant because existing tenants often pay less than new ones moving in.
- January to March is peak rental season in Australia, driven by university semesters starting and corporate hiring cycles kicking off after the summer holidays.
- Most Australian landlords do not include utilities in the rent, with tenants typically responsible for electricity, gas, and metered water usage.
- Inner-city suburbs near train stations in Sydney, Melbourne, and Brisbane can command rent premiums of 10% to 15% over similar properties further from transit.
- Land tax in Australia varies dramatically by state, with NSW only applying it above AUD 1,075,000 land value while Victoria kicks in at much lower thresholds.
- Furnished apartments in Australia typically rent for 15% to 25% more than unfurnished, but around 80% of long-term tenants prefer to bring their own furniture.
What are typical rents in Australia as of 2026?
What's the average monthly rent for a studio in Australia as of 2026?
As of January 2026, the average monthly rent for a studio apartment in Australia is around AUD 2,080, which works out to approximately USD 1,350 or EUR 1,250.
Studio rents in Australia typically range from about AUD 1,500 per month (USD 975 / EUR 900) in outer suburban areas to AUD 2,800 (USD 1,820 / EUR 1,680) in premium inner-city locations like Sydney CBD or Melbourne Southbank.
The main factors driving studio rent differences across Australia include location (CBD versus suburbs), building age and quality, whether the unit has air conditioning, and proximity to public transport.
What's the average monthly rent for a 1-bedroom in Australia as of 2026?
As of January 2026, the average monthly rent for a 1-bedroom apartment in Australia is approximately AUD 2,425, which translates to around USD 1,575 or EUR 1,455.
One-bedroom apartment rents in Australia typically range from AUD 1,800 per month (USD 1,170 / EUR 1,080) in middle-ring suburbs to AUD 3,200 (USD 2,080 / EUR 1,920) in high-demand inner areas.
The cheapest 1-bedroom rentals in Australia tend to be in outer suburbs like Campbelltown in Sydney or Werribee in Melbourne, while the most expensive are found in prestige areas like Bondi, South Yarra, and New Farm in Brisbane.
What's the average monthly rent for a 2-bedroom in Australia as of 2026?
As of January 2026, the average monthly rent for a 2-bedroom apartment in Australia is approximately AUD 3,030, which equals around USD 1,970 or EUR 1,820.
Two-bedroom apartment rents in Australia typically range from AUD 2,200 per month (USD 1,430 / EUR 1,320) in affordable outer areas to AUD 4,500 (USD 2,925 / EUR 2,700) in premium inner-city locations.
The most affordable 2-bedroom rentals in Australia are generally found in suburbs like Logan in Brisbane or Dandenong in Melbourne, while the most expensive are in areas like Double Bay in Sydney, Toorak in Melbourne, and Cottesloe in Perth.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Australia.
What's the average rent per square meter in Australia as of 2026?
As of January 2026, the average rent per square meter for apartments in Australia is approximately AUD 49 per month, which equals around USD 32 or EUR 29 (roughly AUD 590 per square meter annually).
Rent per square meter in Australia ranges from around AUD 30/month (USD 20 / EUR 18) in outer suburban areas to AUD 75/month (USD 49 / EUR 45) in premium CBD locations with harbor or city views.
Compared to other major Australian cities, Sydney has the highest rent per square meter, followed by Perth and Brisbane, while Adelaide and regional centers generally offer better value for space.
Properties that push rent per square meter above average in Australia typically feature water views, high-floor positions in modern towers, premium finishes, and smart home technology.
How much have rents changed year-over-year in Australia in 2026?
As of January 2026, average rents in Australia have increased by approximately 5% year-over-year, with houses growing slightly faster than apartments.
The main factors driving rent changes in Australia this year include persistently low vacancy rates, strong migration inflows, and affordability constraints that are starting to limit how much further rents can rise.
This 5% growth represents a clear slowdown from the double-digit increases Australia experienced in 2022 and 2023, signaling the market is moving past its peak growth phase.
What's the outlook for rent growth in Australia in 2026?
As of January 2026, rent growth in Australia is projected to moderate to between 2% and 4% over the coming year, roughly in line with general inflation.
The key factors likely to influence rent growth in Australia include interest rate movements affecting housing supply, ongoing migration levels, and construction pipeline completions that could ease pressure in some markets.
Suburbs with strong transport links and limited new supply in Australia, such as inner Sydney, inner Melbourne, and Brisbane's inner north, are expected to see the strongest rent growth during 2026.
The main uncertainties that could shift Australia's rent outlook include unexpected changes in migration policy, sharper-than-expected interest rate cuts spurring buyer demand, or construction delays that further constrain rental supply.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in Australia as of 2026?
Which neighborhoods have the highest rents in Australia as of 2026?
As of January 2026, the neighborhoods with the highest average rents in Australia are Point Piper and Double Bay in Sydney (averaging AUD 5,500+ per month or USD 3,575 / EUR 3,300), Toorak in Melbourne (around AUD 4,800 per month or USD 3,120 / EUR 2,880), and Cottesloe in Perth (approximately AUD 4,200 per month or USD 2,730 / EUR 2,520).
These premium Australian neighborhoods command top rents because they combine waterfront or parkland settings, proximity to top private schools, excellent security, and very limited rental stock in prestigious postcodes.
The typical tenants in these high-rent Australian neighborhoods include corporate executives, expats on generous housing allowances, and high-net-worth individuals who prioritize privacy, prestige, and convenience.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Australia.
Where do young professionals prefer to rent in Australia right now?
The top neighborhoods where young professionals prefer to rent in Australia are Surry Hills and Newtown in Sydney, Richmond and Fitzroy in Melbourne, and Fortitude Valley and Newstead in Brisbane.
Young professionals in these Australian neighborhoods typically pay between AUD 2,200 and AUD 3,200 per month (USD 1,430 to USD 2,080 / EUR 1,320 to EUR 1,920) for a 1-bedroom apartment.
These neighborhoods attract young professionals in Australia because they offer walkable streets packed with cafes and bars, excellent public transport connections, proximity to major employment centers, and a vibrant social scene.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Australia.
Where do families prefer to rent in Australia right now?
The top neighborhoods where families prefer to rent in Australia are Lane Cove and Ryde in Sydney, Glen Iris and Balwyn in Melbourne, and Indooroopilly in Brisbane.
Families renting 2-3 bedroom houses in these Australian neighborhoods typically pay between AUD 3,500 and AUD 5,000 per month (USD 2,275 to USD 3,250 / EUR 2,100 to EUR 3,000).
These neighborhoods attract families in Australia because they offer larger homes with backyards, quieter tree-lined streets, good parks, and strong community feel without being too far from city jobs.
Top-rated schools near these family-friendly Australian neighborhoods include Ryde Secondary College and Lane Cove Public in Sydney, Balwyn High and Glen Iris Primary in Melbourne, and Indooroopilly State High in Brisbane.
Which areas near transit or universities rent faster in Australia in 2026?
As of January 2026, the areas that rent fastest in Australia are Kensington near UNSW in Sydney, Carlton and Parkville near the University of Melbourne, and St Lucia near the University of Queensland in Brisbane.
Properties in these high-demand Australian areas typically stay listed for just 7 to 12 days, well below the national median of 17 days.
The rent premium for properties within walking distance of major transit hubs or universities in Australia is typically AUD 200 to AUD 400 per month (USD 130 to USD 260 / EUR 120 to EUR 240) compared to similar properties further away.
Which neighborhoods are most popular with expats in Australia right now?
The top neighborhoods most popular with expats in Australia are North Sydney and Chatswood in Sydney, Southbank and Docklands in Melbourne, and South Brisbane and Newstead in Brisbane.
Expats in these Australian neighborhoods typically pay between AUD 2,800 and AUD 4,200 per month (USD 1,820 to USD 2,730 / EUR 1,680 to EUR 2,520) for a furnished 2-bedroom apartment.
These neighborhoods attract expats in Australia because they offer modern apartment buildings, easy access to international airports, English-speaking services, and proximity to CBD corporate offices.
The expat communities most represented in these Australian neighborhoods include British, American, and Indian professionals in Sydney, along with significant Chinese and Southeast Asian communities in Melbourne's Docklands and Chatswood.
And if you are also an expat, you may want to read our exhaustive guide for expats in Australia.
Get fresh and reliable information about the market in Australia
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Who rents, and what do tenants want in Australia right now?
What tenant profiles dominate rentals in Australia?
The top three tenant profiles dominating the rental market in Australia are young professionals aged 25 to 35, students and recent graduates aged 18 to 25, and families with children.
In Australia's rental market, young professionals make up roughly 35% of tenants, students and recent graduates account for about 25%, and families represent around 20%, with the remainder split between retirees and new migrants.
Young professionals in Australia typically seek 1-2 bedroom apartments near transport and work, students prefer shared houses or studios near universities, and families look for 3-4 bedroom houses in good school catchments with outdoor space.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Australia.
Do tenants prefer furnished or unfurnished in Australia?
In Australia, approximately 80% of long-term tenants prefer unfurnished rentals, while only about 20% actively seek furnished apartments.
The typical rent premium for furnished apartments in Australia is around AUD 300 to AUD 600 per month (USD 195 to USD 390 / EUR 180 to EUR 360), representing roughly a 15% to 25% increase over unfurnished equivalents.
Tenant profiles that prefer furnished rentals in Australia include corporate relocations, international students, new migrants still settling in, and short-to-medium term contractors on work assignments.
Which amenities increase rent the most in Australia?
The top five amenities that increase rent the most in Australia are air conditioning, secure parking, in-unit laundry, a balcony or outdoor space, and pet-friendly policies.
In Australia, air conditioning adds around AUD 80 to AUD 150 per month (USD 52 to USD 98 / EUR 48 to EUR 90), secure parking adds AUD 150 to AUD 300 (USD 98 to USD 195 / EUR 90 to EUR 180), in-unit laundry adds AUD 50 to AUD 100 (USD 33 to USD 65 / EUR 30 to EUR 60), a balcony adds AUD 100 to AUD 200 (USD 65 to USD 130 / EUR 60 to EUR 120), and pet-friendly status adds AUD 50 to AUD 150 (USD 33 to USD 98 / EUR 30 to EUR 90).
In our property pack covering the real estate market in Australia, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Australia?
The top five renovations that get the best ROI for rental properties in Australia are fresh paint and flooring, kitchen updates (benchtops and appliances), bathroom refresh (fixtures and ventilation), air conditioning installation, and outdoor area improvements.
In Australia, a paint and flooring refresh typically costs AUD 3,000 to AUD 8,000 (USD 1,950 to USD 5,200 / EUR 1,800 to EUR 4,800) and can add AUD 50 to AUD 100 per month in rent, while a kitchen update at AUD 8,000 to AUD 20,000 (USD 5,200 to USD 13,000 / EUR 4,800 to EUR 12,000) can boost rent by AUD 80 to AUD 200 monthly.
Renovations with poor ROI that Australian landlords should avoid include high-end luxury finishes that tenants will not pay extra for, swimming pool additions with high maintenance costs, and over-customized designs that limit tenant appeal.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How strong is rental demand in Australia as of 2026?
What's the vacancy rate for rentals in Australia as of 2026?
As of January 2026, the national vacancy rate for rental properties in Australia is approximately 1.3%, which indicates a very tight market where tenants face significant competition for available homes.
Vacancy rates across Australia range from below 1% in high-demand inner suburbs of Sydney and Perth to around 2% to 2.5% in some outer regional areas and less popular suburban pockets.
The current 1.3% vacancy rate in Australia is well below the historical balanced market benchmark of 3%, meaning the rental market remains firmly in landlord-favorable territory.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Australia.
How many days do rentals stay listed in Australia as of 2026?
As of January 2026, rental properties in Australia stay listed for a median of approximately 17 days before being leased.
Days on market across Australia range from as few as 5 to 10 days for well-priced properties in high-demand inner suburbs to 30 or more days for overpriced listings or properties in less popular areas.
The current 17-day median in Australia is roughly similar to one year ago, reflecting persistently strong demand even as the pace of rent growth has moderated from its peak.
Which months have peak tenant demand in Australia?
The peak months for tenant demand in Australia are January through March, when university semesters begin, corporate hiring ramps up, and households prefer moving during warmer weather.
These seasonal patterns in Australia are driven by the academic calendar (universities start in late February and early March), the new financial year mindset for job changers, and the practical preference to move when weather is pleasant.
The lowest tenant demand in Australia typically occurs during winter months from June through August, when fewer people want to relocate, leading to longer vacancy periods and slightly more negotiating room for tenants.
Buying real estate in Australia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Australia as of 2026?
What property taxes should landlords expect in Australia as of 2026?
As of January 2026, landlords in Australia should expect to pay annual property taxes (council rates plus land tax where applicable) ranging from AUD 2,000 to AUD 8,000 (USD 1,300 to USD 5,200 / EUR 1,200 to EUR 4,800) for a typical investment property, depending heavily on state and land value.
Property tax costs in Australia can range from as low as AUD 1,500 annually for modest properties below land tax thresholds to over AUD 20,000 (USD 13,000 / EUR 12,000) for high-value properties in premium locations subject to full land tax rates.
In Australia, property taxes are calculated differently by each state: council rates are based on property value and set locally, while state land tax applies only to investment properties above certain thresholds (for example, AUD 1,075,000 land value in NSW) and uses tiered marginal rates.
Please note that, in our property pack covering the real estate market in Australia, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Australia right now?
A realistic annual maintenance budget for a typical rental property in Australia is approximately AUD 4,000 to AUD 8,000 (USD 2,600 to USD 5,200 / EUR 2,400 to EUR 4,800), or roughly 1% of the property's value.
Maintenance costs in Australia can range from AUD 2,000 annually for newer apartments in good condition to AUD 15,000 or more (USD 9,750 / EUR 9,000) for older houses requiring regular repairs to plumbing, roofing, or weatherproofing.
Most landlords in Australia set aside between 5% and 8% of their annual rental income specifically for maintenance and unexpected repairs, which provides a sensible buffer for typical wear and tear.
What utilities do landlords often pay in Australia right now?
In Australia, landlords most commonly pay strata or body corporate levies for apartments, fixed water and sewerage charges, and building insurance, while tenants typically pay electricity, gas, and water usage.
Typical monthly costs for landlord-paid utilities in Australia include strata levies of AUD 300 to AUD 800 (USD 195 to USD 520 / EUR 180 to EUR 480) for apartments, and fixed water rates of AUD 80 to AUD 150 (USD 52 to USD 98 / EUR 48 to EUR 90) for houses.
The common practice in Australia is that tenants pay for all consumption-based utilities (electricity, gas, water usage if separately metered), while landlords cover ownership-related costs like strata fees, council rates, and building insurance.
How is rental income taxed in Australia as of 2026?
As of January 2026, rental income in Australia is taxed as part of your ordinary income at your marginal tax rate, which ranges from 0% for income under AUD 18,200 up to 45% for income over AUD 190,000, plus the Medicare levy.
The main deductions Australian landlords can claim against rental income include mortgage interest, property management fees, repairs and maintenance, insurance premiums, council rates, depreciation on fixtures, and capital works deductions on the building itself.
Common tax mistakes that landlords in Australia should avoid include claiming capital improvements as immediate repairs (they must be depreciated instead), failing to apportion expenses when a property is only partly rented, and not keeping proper records for the 5-year ATO retention period.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Australia.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Australia, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why we trust it | How we used it |
|---|---|---|
| Australian Bureau of Statistics (ABS) | ABS is Australia's official statistics agency and the primary source for CPI rent measurements. | We used ABS data to understand how rents are actually measured in Australia. We also referenced their insights on differences between new and existing tenancies. |
| Housing Data Australia (AIHW) | This official government dashboard publishes rental indicators and clearly cites ABS/CPI as its primary source. | We used it to cross-check rent inflation trends. We also used it to explain the difference between rents paid and advertised rents. |
| SQM Research (Vacancy Rates) | SQM is one of Australia's longest-running property data houses with transparent methodology. | We used their November 2025 release as our headline vacancy rate source. We also referenced their 2026 rent growth expectations. |
| SQM Research (Weekly Rents) | SQM publishes a long-running weekly series on asking rents with consistent definitions. | We used this to anchor our January 2026 typical rent estimates. We also used their year-on-year change figures for growth calculations. |
| Domain (September 2025 Report) | Domain is a major Australian property portal with a well-known quarterly rental series. | We used it to validate the slowing growth and record-high level story. We also used it to support city-by-city differences. |
| Domain (March 2025 Report) | Same trusted Domain series with commentary on vacancies and market conditions. | We used it to triangulate the earlier turning point in the market. We used it to confirm that growth slowed while absolute levels stayed high. |
| CoreLogic/Cotality | CoreLogic is a top-tier Australian housing data provider used widely by banks and media. | We used it to triangulate national rent growth direction. We also used their outlook on affordability constraints and supply. |
| Reserve Bank of Australia (SMP 2025) | The RBA is Australia's central bank and a primary macro source on inflation and housing costs. | We used it to frame why rents matter to inflation. We used it to set realistic expectations for 2026 rent moderation. |
| RBA November 2025 Statement | A primary-source policy document with dated cut-offs and consistent national accounts framing. | We used it to cross-check the macro backdrop as of late 2025. We used it to support the affordability-as-limiter storyline. |
| Australian Taxation Office (ATO) | The ATO is the official tax authority and the definitive reference for rental income taxation. | We used it to explain how rental income is taxed at marginal rates. We also used it for deduction categories and compliance guidance. |
| Revenue NSW | The official NSW revenue office with current land tax thresholds and rates. | We used it as the template for how state land tax works. We used the actual 2025 thresholds as a concrete example landlords can verify. |
| State Revenue Office Victoria | The official Victorian revenue office with clear rate brackets. | We used it as a second state example showing land tax is state-based. We used it to illustrate how property taxes differ by location. |
| NSW Government (Water Rules) | Official NSW Government guidance for rental utility responsibilities. | We used it to explain that most utilities are not included in Australian rent. We used it to anchor the landlord/tenant utility split. |
| Consumer Affairs Victoria | The official Victorian consumer regulator for renting rules. | We used it to cross-check utilities responsibility in another major state. We used it to keep advice consistent with tenancy law. |
| Queensland RTA | Queensland's official tenancy authority setting out utility-charging rules. | We used it to triangulate across states that utility payments depend on agreements. We used it to keep our guidance accurate beyond NSW and Victoria. |
| Rent.com.au | A major Australian rental portal with published market snapshots and days-on-market data. | We used their median time on market figure as our baseline. We also used their tenant preference insights for demand analysis. |
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