Most affordable (and expensive) capital cities for rent in Australia

We explain where you’ll pay the cheapest rent in Australia — and you may be surprised.

It’s been a challenging few years for renters. According to CoreLogic’s latest Quarterly Rental Review (Jan, 2023), rents soared 22.2% between September 2020 and December 2022 – the largest rental upswing on record. While the report points to a slowing in rent hikes, there are big variations in weekly rents across Australian capitals. We look at the cheapest places to rent in Australia – and those cities where you can expect to pay more.

What’s the average rent price in Australia?

When deciding on a rental agreement, price can be a big factor for anyone sitting on the fence. The median rent across Australia is currently $555 per week, according to CoreLogic. In capital cities, it’s $577 per week, while the regional areas have it slightly cheaper at $500.

Nationally, rents rose 10.2% through 2022 with the pace of rent increases slowing during the second half of the year. CoreLogic Head of Research Eliza Owen said: “While a slowdown in the pace of rent rises could be a sign that the rental market is starting to shift, it’s not great news for tenants just yet. Rents are still rising in most capital cities and regional areas with vacancy rates low.”

Here we break down the latest rent price results from CoreLogic for Australia’s capital cities.

Where are the cheapest places to rent in Australia?

Taking out the top spot as the cheapest place to rent in Australia – among our capital cities at least – is Melbourne in Victoria. It currently has a median rent that is $174 cheaper than the most expensive capital city, Canberra.

Below, capital cities are listed from the cheapest overall median rent prices to the most expensive, as calculated in CoreLogic’s December 2022 Quarterly Rental Review.

1. Melbourne – $507 per week

If you’re in search of the cheapest rent in Australia, Melbourne takes out top billing across the state capitals. According to CoreLogic, the median weekly rent in Melbourne has gone up 9.6% over the past year to $507. Houses in Melbourne currently have a median rent of $530 per week and $482 for units. The gross rental yield (that is, how much rental income a landlord receives each year as a percentage of their property’s value) is 3.25%. CoreLogic Head of Research, Eliza Owen, says returning overseas migration is likely to place continued demand on some rental markets in Melbourne. Based on past migration data, the areas most impacted could be Inner Melbourne, the South East of Melbourne, the West suburbs of Melbourne.

2. Adelaide – $518 per week

The median weekly rent in Adelaide jumped 12.9% over the past year to $518. Adelaide currently has a median rent of $540 per week for houses and $433 for units, and the gross rental yield is 3.95%.

3. Hobart – $552 per week

In the past 12 months, the median rent in Hobart for all dwelling types has gone up 5.3% to $552 per week, and the gross rental yield is currently 4.12%. Houses in Hobart currently have a median rent of $565, and $484 for units. Ms Owen said Tasmania has seen a strong surge in net overseas migration post pandemic travel restrictions, which may be pushing rental demand higher.

4. Perth – $553 per week

Median weekly rent values in Perth have gone up 11.2% over the past year to $553 across all dwelling types, according to CoreLogic. Houses in Perth currently have a median rent of $562 per week, compared to $479 for units. The gross rental yield is 4.67%.

5. Brisbane – $588 per week

According to CoreLogic, median weekly rent in Brisbane has risen 13.4% over the past year – the biggest increase nationally – to $588. Houses currently have a median rent of $619 per week, compared to $504 for units. The gross rental yield is 4.19%.

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6. Darwin – $594 per week

According to CoreLogic, Darwin’s median weekly rent increased 5.1% over the past year to $594. Houses in Darwin currently have a median rent of $654 per week, compared to $509 for units. Darwin remains the highest-yielding capital city, with houses producing a yield of 5.74% and units 7.12%. The overall gross rental yield is 6.26%.

7. Sydney – $679 per week

Sydney is the second-most expensive capital city on average for renters in Australia, with a median weekly rent of $679, up 11.4% year-on-year. The gross rental yield is currently 3.14% compared to 2.42% a year ago. Houses in Sydney currently have a median rent of $735 per week, compared to $616 for apartments. As in Melbourne, Ms Owen said returning overseas migration is likely to place continued demand on rental markets in Sydney, especially those that are popular with overseas arrivals such as the Inner South West.

8. Canberra – $681 per week

Canberra is the nation’s most expensive capital city on average for renters. It has a median weekly rent of $681, up 4.3% over the past year, which is actually the lowest increase across the state capitals. Houses in Canberra currently have a median rent of $722 per week and $582 for units.

Rent or buy in Australia: How does renting compare to home ownership?

CoreLogic’s findings from its December 2022 Quarterly Rental Review showed the median weekly rent across Australia is currently $555 per week. How does this stack up against home ownership?

Canstar found the average mortgage repayments for an established home across Australia are worth about $3,562 per month. That can work out to around $890 per week. This is in addition to any fees that a lender may charge and assuming that the rate stays the same over that time.

While this example shows weekly mortgage repayments can be higher than the median weekly rent, it is important to note that this doesn’t take into account all home ownership and renting variables. It’s also worth mentioning that CoreLogic points to a likely resurgence in overseas student numbers In Australia following the announcement in China that academic degrees and diplomas awarded from online studies will no longer be recognised. This could push rents higher, especially in inner-city areas close to universities.

Also, everyone’s circumstances are different and so whether home ownership or renting is the better option for you will depend on your situation, including how much you would need to borrow to buy a home and where you live.

Cover image source: Cast of Thousands/Shutterstock.com