National Vacancy Rate Edges to 1.2% as Rents Rise 7.3% Annually

Australia's rental vacancy rate edged up to 1.2% in April, but with rents still rising 7.3% annually, conditions stay firmly tight for tenants.

Australia's national residential vacancy rate rose to 1.2% in April 2026, up from 1.0% in March, according to SQM Research data reported by [Property Update](https://propertyupdate.com.au/rental-vacancy-rates/). The total number of available rental properties increased to 35,258 dwellings — a moderate rise, but one that leaves vacancy rates well below historical averages.

A 1.2% vacancy rate means roughly 98 in every 100 rental properties are occupied. In most capital cities, it remains firmly a landlord's market.

City by City: Where Conditions Are Tightest

The national headline figure masks stark differences between cities.

**Darwin** remains the tightest rental market in the country, with a vacancy rate of just 0.3% — down from 0.4% in March — and only 75 dwellings available across the entire city. Rents there are 11.3% higher than a year ago, one of the strongest annual growth rates nationally.

**Brisbane** is similarly constrained at 0.8%, with 2,900 dwellings vacant. Combined rents in Brisbane rose 1.4% over the past month and are 8.1% higher year-on-year. **Perth** and **Adelaide** both sit below 0.7%: Perth at 0.6% (1,138 vacancies) and Adelaide at 0.7% (1,117 vacancies). Despite some month-to-month volatility in rent, both cities are running well ahead of where they were a year ago — Perth up 6.3% annually, Adelaide up 4.6%.

**Sydney** recorded a vacancy rate of 1.3% in April (up from 1.1% in March), with 9,696 dwellings available. Combined rents in Sydney averaged $918.75 per week, up 7.3% year-on-year. **Melbourne** sat at 1.5% vacancy (8,079 dwellings), with combined rents up 6.1% over the same period.

**Hobart** recorded the strongest annual rent growth of any capital city at 15.2% — despite a vacancy rate that ticked up slightly to 0.5%. **Canberra** also saw vacancy rise, from 1.1% to 1.4%, with combined rents increasing 1.3% for the month and 1.4% year-on-year.

Nationally, the combined average weekly rent now sits at $696.94, with the capital city average at $794.54. House rents rose 7.8% nationally over the past year; unit rents rose 6.5%.

What This Means for Property Investors

Louis Christopher, director of SQM Research, offered a measured but clear assessment: "We are recording very limited rental availability in several capital cities, which is continuing to place upward pressure on rents despite some modest increases in listings. Without a sustained lift in housing supply and/or a steadying of demand, rental affordability pressures are likely to remain a major issue throughout 2026."

For investors already in the market, conditions remain supportive in terms of rental demand. The combination of tight vacancies and rising rents supports yield — though borrowing costs have also risen considerably over the past year. Use the [repayment calculator](/calculators/repayment) to check whether your current loan is still working as hard as it should under today's rate environment.

For investors considering entering the market, the picture is more layered — particularly given the federal budget announced on 12 May 2026. As Christopher flagged, the proposed changes restricting negative gearing on established properties are likely to put additional pressure on the rental market by reducing new investment into the existing housing stock. This could make the supply-demand imbalance worse for tenants rather than better — an irony not lost on industry groups who had warned of this outcome.

Whether you're looking at an established property or a new build, the key metrics to model are gross yield, holding costs (including the interest rate on your loan) and the tax treatment of any future gains. The structure of the right [investment home loan](/home-loans/investor) can make a material difference to your actual cash flow, not just the headline numbers.

For investors weighing entry points — particularly in cities where vacancy rates are already extremely low — this is also a reasonable time to [compare current home loan rates](/home-loans/cheapest) and check that your financing is as efficient as possible. On a $600,000 investment property loan, even a modest improvement in rate has a meaningful impact on annual cash flow, and in a market where rates are elevated, every basis point matters.

The broader rental market outlook is straightforward: Australia is not building fast enough to meet demand, and April's modest uptick in vacancies does not change that picture. Tight rental conditions — and upward rent pressure — are likely to persist through 2026 and into 2027, regardless of which direction the property tax landscape tilts.