Rental conditions are tight but pressure is easing in some markets

The number of available rentals has been improving but conditions remain tough for renters, particularly compared to the pre-pandemic period. However in a number of areas, those who are renting have much more choice than a year ago.

According to new data from PropTrack, total rent listings in June 2026 were 2.2% higher compared to June 2025 nationally. They are also currently 2.6% above the five year monthly average which reflects a slight improvement in rental availability.

However, looking at longer term trends, current listing counts are well below the level seen pre-pandemic.

The recent uptick is unlikely to translate into meaningful relief for renters, particularly given that volumes have hovered around the same level over the past 2 years.

This is evident in weekly advertised rents, which have continued to trend upwards and hit a record high in the June quarter.

Jump ahead to see the regions with the biggest jump in rental availability.

Why is the pool of available rentals still scarce?

A number of factors have contributed to the low volume of available rentals.

One of the main factors is heightened demand driven by strong population growth in recent years.

Between mid-2023 and mid-2025, net overseas migration averaged around 425,000 each year. With a large proportion of new migrants being renters, competition for available rentals has become more pronounced.

Despite only a small decline in household size over the past decade from 2.6 to 2.5, this modest shift has translated into demand for about 144,000 additional rental homes - based on renter households making up around a third of all households. This trend is also likely contributing to elevated rental demand.

New home construction has not kept pace with population growth in most states. Picture: Getty

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Another contributing factor is the persistent shortage in the supply of new homes.

Although building approvals have been trending upwards, completions have not kept pace with population growth in all states except South Australia, Australian Capital Territory and Tasmania (over the 12 months ending September 2025).

Capacity has been a key constraint with the construction industry continuing to have the largest workforce shortages among all industries.

While rental availability is likely to be constrained in the short- to medium-term, there has been marked increase in total rental listings in a number of areas over the past year.

This is welcome news for renters in these areas who may face less competition and have more options.

The regions seeing the largest rental availability improvements

In the regional areas, Far West and Orana and New England and Northwest in New South Wales and Wide Bay in Queensland led in terms of growth in rental availability. Renters in these areas had close to 40% more homes to select from compared to 12 months prior.

Hume in Victoria, and Launceston and North East in Tasmania also had large increases in the number of available rentals. Total rental listings were up 33% and 24% respectively since June 2025, providing renters in these areas with more choice.

In the capital cities, the Outer South West, Northern Beaches and Baulkham Hills and Hawkesbury regions in Sydney recorded the largest uplift in rental listings over the past 12 months. The number of listings grew by 12-13%.

Renters in the Australian Capital Territory and the Sydney-Ryde region saw some of the biggest improvements in rental availability as well. Rental listings were 12-13% higher than a year prior.

The trajectory for rental availability

Over the next decade, annual population growth is projected to be around 235,000. We expect rental demand to remain high as a result.

While the 2026-27 budget established a new $2 billion local Infrastructure fund to help establish new housing supply, the effects will take time. Increases in new home approvals is promising but a shortfall in supply is expected to continue, especially with ongoing labour shortages in the construction industry and higher relative costs of construction.

These demand and supply interactions are likely to keep rental availability constrained and put upward pressure on rent prices, however conditions could improve if labour shortages ease and construction ramps up.

The updates to property taxation in the budget may disincentivise investors from entering the market which could also have downstream effects on rental supply, however, this may be offset by higher rates of homeownership as competition for established homes decreases with the new policies.

With the impact of changes yet to take full effect, we will need to wait and see what transpires in the rental market in the upcoming months.