Rents across Australia have risen by 14.2% over the past two years, more than twice the national inflation rate of 6.6%, according to Money.com.au’s analysis of ABS data.

With increases of 7.3% in 2023 and 6.4% in 2024, forecasts suggest a further 18% rise in rents by 2030.

This sustained upward trend is putting pressure on renters and could influence broader dynamics in residential mortgage lending.

Property expert Mansour Soltani notes the growing disparity between renters and homeowners: “Inflation is easing for most, but rents keep rising. Renters are bearing the brunt of the housing crisis.”

Rising rents may prompt increased interest in transitioning from renting to home ownership, particularly if borrowing conditions ease in the near term.

Perth recorded the strongest rental growth (19.9%) over two years, followed by Brisbane (15.8%) and Sydney (15.4%).

Melbourne (12.7%) and Adelaide (12.2%) also saw notable increases, while Darwin and Canberra reported more modest growth. Hobart was the only capital to experience a rental decline, at -1.5%.

Nearly half of Australian renters (47%) say they would consider relocating to find more affordable housing, with 14% actively searching.

Gen Z and Gen X renters are particularly impacted, reflecting potential future demand shifts in the first-home buyer segment.

Population growth, low vacancy rates, and limited housing supply continue to fuel rental inflation. Soltani cautions that this could resemble the extended rental pressures experienced during the GFC.