What are rents like in Sydney right now? (January 2026)

Sydney remains Australia's priciest rental market, but rent increases have finally started slowing after a few intense years.

In this guide, we cover what you can expect to pay, where the best neighborhoods are, and what landlords need to know about costs.

We update this article regularly so you always have fresh data.

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 Sydney.

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Sydney. If you’d like to learn more about us, you can check our presentation page.

What are typical rents in Sydney as of 2026?

What's the average monthly rent for a studio in Sydney as of 2026?

As of January 2026, the average monthly rent for a studio apartment in Sydney is around A$2,600 (approximately US$1,700 or EUR 1,550).

Most studios rent between A$2,000 and A$3,200 per month (US$1,300 to US$2,100, or EUR 1,200 to EUR 1,950), depending on location and condition.

The biggest factors affecting studio rents in Sydney are proximity to the CBD, public transport access, building age, and features like air conditioning or a balcony.

What's the average monthly rent for a 1-bedroom in Sydney as of 2026?

As of January 2026, the average monthly rent for a 1-bedroom apartment in Sydney is approximately A$2,900 (around US$1,900 or EUR 1,770).

One-bedroom apartments typically rent between A$2,200 and A$3,600 per month (US$1,450 to US$2,350, or EUR 1,350 to EUR 2,200).

The cheapest 1-bedroom rents tend to be in outer suburbs like Parramatta or Liverpool, while the most expensive are in Barangaroo, the CBD, and the Eastern Suburbs near Bondi.

What's the average monthly rent for a 2-bedroom in Sydney as of 2026?

As of January 2026, the average monthly rent for a 2-bedroom apartment in Sydney is approximately A$3,210 (around US$2,100 or EUR 1,960).

Two-bedroom apartments typically rent between A$2,400 and A$4,500 per month (US$1,570 to US$2,950, or EUR 1,470 to EUR 2,750).

Suburbs like Bankstown and Campbelltown offer more affordable 2-bedroom rentals, while Double Bay, Point Piper, and Mosman sit at the premium end.

By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Sydney.

What's the average rent per square meter in Sydney as of 2026?

As of January 2026, the average rent per square meter in Sydney is approximately A$55 per month (around US$36 or EUR 34).

Across different neighborhoods, rent per square meter ranges from about A$45 to A$70 per month (US$30 to US$46, or EUR 28 to EUR 43).

Compared to other major Australian cities, Sydney's rent per square meter is roughly 25-35% higher than Melbourne and about 40% higher than Brisbane.

Properties that push rent per square meter above average typically feature harbor views, premium finishes, air conditioning, and parking in high-demand locations.

How much have rents changed year-over-year in Sydney in 2026?

As of January 2026, rents in Sydney have increased by approximately 5.7% for units and 7.3% for houses compared to a year ago.

The main factors driving rent changes include ongoing population growth from migration, persistently low vacancy rates, and limited new rental supply.

This year's rent growth is slower than the previous year, when increases reached double digits in some segments, signaling a transition toward stabilisation.

What's the outlook for rent growth in Sydney in 2026?

As of January 2026, Sydney rents are projected to grow between 2% and 5% over the year, with units around 2-4% and houses around 3-5%.

Key factors likely to influence rent growth include migration-driven population growth, affordability limits, and interest rate changes affecting investor supply.

Neighborhoods expected to see the strongest rent growth include Parramatta (benefiting from the new metro), Macquarie Park, and inner-city pockets with limited new supply.

Risks that could affect projections include economic slowdown, a surge in apartment completions, or changes to immigration policy.

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 Sydney as of 2026?

Which neighborhoods have the highest rents in Sydney as of 2026?

As of January 2026, the three neighborhoods with the highest rents in Sydney are Double Bay (around A$4,500/month or US$2,950), Barangaroo (around A$4,200/month or US$2,750), and Mosman (around A$4,000/month or US$2,620).

These neighborhoods command premium rents due to harbor views, CBD proximity, prestigious school catchments, and high-end amenities.

The typical tenant in these high-rent areas includes senior executives, corporate expats on housing allowances, and high-income couples seeking lifestyle convenience.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Sydney.

Where do young professionals prefer to rent in Sydney right now?

The top three neighborhoods where young professionals prefer to rent in Sydney are Surry Hills, Newtown, and Pyrmont.

Young professionals in these areas typically pay between A$2,400 and A$3,400 per month (US$1,570 to US$2,230) for a 1-bedroom or small 2-bedroom.

What attracts them includes walkable streets with cafes and bars, short CBD commutes, good public transport, 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 Sydney.

Where do families prefer to rent in Sydney right now?

The top three neighborhoods where families prefer to rent in Sydney are Lane Cove, Chatswood, and Randwick.

Families renting 2-3 bedroom apartments in these areas typically pay between A$3,200 and A$4,800 per month (US$2,100 to US$3,150).

These neighborhoods attract families with quality schools, parks and playgrounds, safe streets, and good shopping amenities.

Top-rated schools nearby include Chatswood Public School, Lane Cove Public School, and Randwick Boys and Girls High Schools.

Which areas near transit or universities rent faster in Sydney in 2026?

As of January 2026, the three areas near transit or universities that rent fastest in Sydney are Ultimo/Haymarket (near UTS), Kensington/Kingsford (near UNSW), and Macquarie Park (near Macquarie University).

Properties in these high-demand areas typically stay listed for only 7 to 12 days, compared to the citywide median of around 14 days.

The typical rent premium for properties within walking distance of transit or universities is around A$200 to A$400 per month (US$130 to US$260).

Which neighborhoods are most popular with expats in Sydney right now?

The three neighborhoods most popular with expats in Sydney are Bondi Beach, the CBD/Barangaroo area, and Mosman.

Expats in these neighborhoods typically pay between A$3,000 and A$5,000 per month (US$1,970 to US$3,280) for a 1-2 bedroom apartment.

These areas attract expats with English-speaking services, international school proximity, easy airport access, and established expat communities.

The most represented expat communities include British, American, and European nationalities in the Eastern Suburbs, plus professionals from Asia in the CBD area.

And if you are also an expat, you may want to read our exhaustive guide for expats in Sydney.

Who rents, and what do tenants want in Sydney right now?

What tenant profiles dominate rentals in Sydney?

The top three tenant profiles dominating Sydney's rental market are young professionals and couples, students, and families renting for school access.

Young professionals account for roughly 40% of rental demand, students represent about 25%, and families make up around 20%.

Young professionals seek 1-2 bedroom apartments in inner suburbs, students look for studios or shared housing near universities, and families search for 3+ bedrooms near good schools.

If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Sydney.

Do tenants prefer furnished or unfurnished in Sydney?

In Sydney, approximately 80-85% of tenants prefer unfurnished rentals, with only 15-20% seeking furnished apartments.

Furnished apartments typically command a rent premium of A$400 to A$800 per month (US$260 to US$520) compared to unfurnished.

Tenant profiles preferring furnished rentals include corporate expats on short-term assignments, international students, and professionals relocating temporarily.

Which amenities increase rent the most in Sydney?

The top five amenities that increase rent most in Sydney are air conditioning, secure parking, a balcony, a dishwasher, and internal laundry facilities.

Air conditioning can add A$100 to A$200 per month, parking adds A$200 to A$400, a balcony adds A$100 to A$150, and a dishwasher or internal laundry each add A$50 to A$100.

In our property pack covering the real estate market in Sydney, we cover what are the best investments a landlord can make.

What renovations get the best ROI for rentals in Sydney?

The top five renovations with the best ROI in Sydney are installing air conditioning, refreshing the kitchen, updating flooring, fresh paint, and improving water efficiency fixtures.

Air conditioning installation costs around A$2,000 to A$5,000 and can increase rent by A$100 to A$200 per month, while a kitchen refresh costs A$3,000 to A$8,000 and can add A$100 to A$150.

Renovations with poor ROI include luxury bathroom overhauls and high-end appliances that exceed tenant expectations for the price point.

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 Sydney as of 2026?

What's the vacancy rate for rentals in Sydney as of 2026?

As of January 2026, the vacancy rate for rental properties in Sydney is approximately 1.4%, indicating a tight market where tenants compete for homes.

Across neighborhoods, vacancy rates range from under 1% in high-demand inner suburbs like Surry Hills to around 2-2.5% in outer areas like Campbelltown.

Sydney's current vacancy remains well below the "balanced market" benchmark of around 3%, meaning conditions still favor landlords despite some easing from 2023-2024.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Sydney.

How many days do rentals stay listed in Sydney as of 2026?

As of January 2026, rentals in Sydney stay listed for an average of approximately 14 days before being leased.

Days on market range from 5-7 days for well-priced apartments in inner suburbs to 20-30 days for houses in outer areas or overpriced listings.

Sydney's current days-on-market is similar to a year ago, reflecting that while the extreme urgency of 2023-2024 has eased slightly, the market remains competitive.

Which months have peak tenant demand in Sydney?

The peak months for tenant demand in Sydney are January through March, followed by a secondary peak from late July to September.

Sydney's seasonal patterns are driven by job relocations aligned with the calendar year, international student arrivals, and lease cycles concentrating renewals in summer.

The months with lowest tenant demand are typically April through June and November through early December.

What will my monthly costs be in Sydney as of 2026?

What property taxes should landlords expect in Sydney as of 2026?

As of January 2026, Sydney landlords should expect council rates of around A$1,500 to A$3,000 per year (US$980 to US$1,970), plus NSW land tax if their total taxable land value exceeds the threshold.

Annual property taxes range from around A$1,500 for apartments in lower-value areas up to A$15,000 or more for higher-value properties triggering land tax.

Property taxes are calculated based on unimproved land value, with council rates set by each local government and land tax applying only above the threshold (around A$1 million in 2026).

Please note that, in our property pack covering the real estate market in Sydney, we cover what exemptions or deductions may be available to reduce property taxes for landlords.

What maintenance budget per year is realistic in Sydney right now?

A realistic annual maintenance budget for a typical rental property in Sydney is around A$4,000 to A$10,000 (US$2,600 to US$6,550), depending on whether it's an apartment or house.

Maintenance costs range from A$2,000 to A$5,000 per year for newer apartments to A$8,000 to A$15,000 for older houses needing more frequent repairs.

Sydney landlords typically set aside 5-10% of annual rental income for maintenance, with apartment owners also paying strata levies of A$3,000 to A$8,000 per year.

What utilities do landlords often pay in Sydney right now?

The utilities Sydney landlords most commonly pay are water service charges (the fixed component) and, in strata buildings, common-area electricity embedded in levies.

Typical monthly costs for landlord-paid utilities include around A$30 to A$50 (US$20 to US$33) for water service charges, while tenants usually pay electricity, gas, and internet.

The common practice in Sydney is that tenants pay electricity, gas, and internet, while landlords cover water service charges and can only on-charge usage if the property meets water efficiency standards.

How is rental income taxed in Sydney as of 2026?

As of January 2026, rental income in Sydney is added to your total taxable income and taxed at your marginal rate, ranging from 0% to 45% depending on your income bracket.

Main deductions landlords can claim include mortgage interest, property management fees, council rates, insurance, repairs, and depreciation on fixtures.

A common Sydney-specific tax mistake is incorrectly claiming improvements as immediate repairs, when the ATO requires capital improvements to be depreciated over time.

We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Sydney.

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 Sydney, 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.

Source	Why it's authoritative	How we used it
SQM Research - Weekly Rents	SQM is a long-running Australian housing analytics firm whose rent series is widely quoted.	We used late-2025 weekly rent levels as our January 2026 anchor. We also used their 12-month percentage change as the year-over-year signal.
SQM Research - Vacancy Rates	SQM's vacancy series is one of the most-referenced benchmarks in Australia.	We used SQM vacancy as the headline demand tightness indicator. We cross-checked with market commentary referencing their releases.
SQM Research - National Vacancy (Nov 2025)	This is SQM's primary-source publication for vacancy methodology.	We used it to ground methodology and confirm Sydney's tightness is part of a national pattern.
NSW DCJ - Rent and Sales Report	It's a NSW Government dataset built from rental bond records.	We used it to cross-check bedroom-based rent levels by geography. We used it as the official counterweight to private indexes.
NSW Fair Trading - Rental Bond Data	It's published by NSW Government from bond transactions.	We used bond-lodgement patterns to interpret tenant demand. We validated rent levels against actual bonded amounts.
ABS - Rental Market Insights	ABS is Australia's official statistics agency with large administrative datasets.	We used ABS to explain advertised vs paid rent measures. We ensured consistency with official inflation measurement.
Housing Data Australia - CPI Rents	It republishes ABS CPI rents in a government-backed format.	We used it to triangulate rent inflation direction. We avoided over-relying on any single private index.
Domain - Rental Report Hub	Domain is a major property portal with consistent research methodology.	We used Domain to cross-check market narrative. We used it as a second private-sector lens alongside SQM.
Domain - Rental Report (Sep 2025)	A time-stamped report with consistent quarter-to-quarter methodology.	We used it to frame the late-2025 shift toward slower growth. We used it as input into our 2026 outlook.
PropTrack / realestate.com.au	PropTrack is REA Group's research arm and widely cited.	We used it to triangulate Sydney's advertised-rent level. We cross-checked that SQM's figures are in the right ballpark.
Revenue NSW - Land Tax	Revenue NSW is the official source for NSW land tax rules.	We used it to describe property tax realities for Sydney landlords. We outlined land-tax thresholds for 2026.
City of Sydney - Council Rates	Primary source for how Sydney's core council charges rates.	We used it to show where council rates come from. We anchored holding-cost estimates for inner Sydney.
Sydney Water - Residential Pricing	Sydney Water publishes time-bounded pricing schedules.	We used it to estimate baseline water service charges. We grounded utilities costs in actual 2026 tariffs.
NSW Government - Water Supply Rules	NSW Government guidance on practical tenant/landlord rules.	We used it to explain who pays for which utility. We supported our landlord costs section.
NSW Residential Tenancies Act - Section 39	AustLII is the standard public-access source for Australian legislation.	We used it to state legal conditions for water charging. We ensured accuracy beyond property-manager folklore.
NSW Government - Rental Law Changes	Official summary of recent rental-law reforms.	We used it to flag rule changes affecting pricing and management in 2026. We informed our tenant preferences sections.
ATO - Rental Properties 2025 Guide	The ATO is the authority on rental income taxation.	We used it to explain rental income treatment and deductions. We ensured cost estimates match tax reality.
ATO - Repairs vs Capital Expenses	ATO guidance on a common landlord tax mistake.	We used it to explain renovation ROI after tax. We suggested tax-consistent renovation choices.
NSW Government - Strata Levies	NSW Government guidance on strata obligations.	We used it to describe the cost stack for unit landlords. We supported our maintenance budget ranges.
ABS Census - Greater Sydney	Census is the baseline dataset for Sydney household demographics.	We used it to characterise renter prevalence. We used it as the demographic backbone for tenant profiles.
Domain Insight - Renter Search Data	Large on-site search behaviour provides strong preference signals.	We used it to identify amenities priced in by Sydney renters. We prioritised upgrades matching what renters filter for.
realestate.com.au - Renter Preferences	Major portal using platform data at scale.	We supported our amenities section with behavioural data. We cross-checked Sydney preferences against national patterns.
NSW Planning - Apartment Design Guide	NSW's official design standards for typical apartment layouts.	We used it to justify typical sizes for rent-per-sqm calculations. We kept our math transparent and reproducible.