Australian housing rents increased 1% in March and 2.6% during the first quarter of 2022, up 70 basis points from the December 2021 quarter.  

CoreLogic reported that rents for regional homes jumped 2.9% over Q1 2022, while rents for homes in the capital cities rose 2.5%. 

National unit rents rose at a faster pace than national house rents, at 3% and 2.4% respectively, with both segments also seeing an increase in the pace of quarterly rental growth.  

However, houses still outperformed units on an annual basis, up 9% and 8% respectively.  

Rents for units across the combined capital cities outperformed houses during the first quarter, increasing 3.1% compared to a 2.2% rise in house rents.  

Source: CoreLogic

CoreLogic Head of Research Eliza Owen said it was interesting to see that as the national pace of capital growth fell, the rental market had re-accelerated. 

“Much of this momentum could be stemming from a recovery in Melbourne rent values, which saw a peak-to-trough decline of -4% between March and December of 2020, but have since recovered to pre-COVID levels and hit new record highs,” Owen said. 

“The only market which has not yet quite recovered full value since the onset of COVID is the Inner Melbourne market, but it is well on its way.” 

Canberra recorded the strongest quarterly rental growth amongst capital city dwellings, up 3.3%, while Darwin recorded a -0.6% decrease in dwelling rents.  

Owen said there was a noteworthy reversal of quarterly growth trends occurring across the capital cities. 

“Melbourne rent values have now seen a rise in quarterly growth for four consecutive quarters,” Owen said.  

“Meanwhile, rent markets that saw high demand earlier in the cycle, such as Perth and Darwin, have been consistently easing.  

Source: CoreLogic

“Recent momentum in the Melbourne rental market coincides with eased travel restrictions for overseas arrivals, which is likely aiding the recovery in this market.  

“Additionally, eased social distancing and increased rates of vaccination will also aid return to office strategies, which may flow through to more rental demand in inner Melbourne markets.” 

Australia’s most expensive suburb for house rentals was Vaucluse in Sydney’s eastern suburbs, with a median weekly rental value of $2,394.  

Elizabeth North in Adelaide was the most affordable suburb to rent a house at $326 per week.  

For units, Point Piper in Sydney’s eastern suburbs remained the most expensive rent at $1,096 per week, while Orelia in southern Perth offered the country’s most affordable median rental value at $268 per week.