Clouds are finally starting to part for Australian tenants, with rents in most major cities either falling, stalling or growing at a slower pace.
Low vacancy rates have pushed advertised rents higher for several months running but the latest report from real estate platform Domain shows conditions are improving for renters.
Asking rents for houses fell 1.8 per cent in Hobart in the June quarter and held steady in Sydney and Perth, the report found.
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Several other cities recorded slower rates of growth over the three months, with the pace of quarterly growth 1.5 times slower than the previous quarter across the combined capitals.
Similarly for units, the pace of growth was halved across the combined capitals in the June quarter from the three months prior.
Domain’s chief of research and economics Nicola Powell said rental market conditions would likely continue to ease, given vacancy rates were moving higher.
Vacancy rates last month in Sydney, Melbourne, Brisbane and Canberra hit six-month highs and in Perth a two-year landmark.
“Secondly, rental demand is easing, as the number of prospective tenants per rental listing has consistently fallen throughout 2024,” Dr Powell said.
This reflected overseas migration likely passing its peak, she said, with further declines expected as the federal government’s immigration strategy worked to ease population growth.
An increase in first-home ownership should further alleviate rental conditions in Australia, Dr Powell said.
Initiatives such as Queensland’s doubled first-home buyer grant, the federal help-to-buy shared equity scheme and revised stamp duty concessions in ACT, South Australia, Western Australia, and Queensland would help more Australians into home ownership.