Sydney median rent hits record $800 a week amid housing supply crunch

Sydney renters are coughing up an extra $2,600 over the year. Picture: iStock Sydney tenants are paying an extra $2,600 a year more, on average, than in 2025 as limited rental availability and soaring living costs continue to drive up rents. Realestate.com.au’s Rental Report for September 2026 found the median Sydney rent grew by 6.7 per cent over the last year and is now a record high of $800 a week. REA senior economic analyst Megan Lieu said Sydney is the most expensive major city for homes and rentals because of supply limitations and population growth. MORE: Home price crash deepens but with a twist Megan Lieu is a senior economic analyst for REA Group and said tight rental availability is a key driver for high Sydney rents. MORE: ‘Costs too much’: New rules planned for Aus renters She noted rental conditions have eased up in recent months, with market conditions stabilising after a long period of rises. “Vacancy rates have increased slightly up to 1.7 per cent and that kind of reflects an increase in rental availability, meaning that renters have more choice and better negotiating prospects,” Ms Lieu said. Nationally, rents grew by $1,820 per year or 5.5 per cent annually to ...