SQM Research data shows rental market remains tight across most capital cities despite modest rise in available stock
Australia's national residential vacancy rate held steady at 1.3% in July 2026, unchanged from June, according to the latest data from SQM Research.
Total vacancies rose to 40,771 dwellings from 39,229 in June, though the headline rate was unchanged. A year earlier, the rate stood at 1.2% with 37,863 vacancies recorded.
Conditions remain tight across most capitals. Brisbane, Perth, Adelaide, Darwin and Hobart all recorded vacancy rates below 1%, with Darwin the tightest nationally at just 0.3% — down from 0.5% a year earlier.
Sydney and Melbourne each rose to 1.7% from 1.6% in June. Canberra recorded the highest rate among the capitals at 1.8%, up from 1.5% a year ago. Adelaide tightened to 0.6% from 0.7%, while Hobart eased to 0.6% from 0.7% but remains in line with its July 2025 level. Brisbane held at 0.9% and Perth at 0.6%, both broadly unchanged year-on-year.
National advertised rents rose 7.2% year-on-year and 0.2% over the past 30 days, with the monthly slowdown attributed partly to typical winter seasonality. The national combined average stands at $698.45 per week; the capital city average is $796.51.
Unit rents outpaced houses, rising 7.7% annually and 1.3% monthly, against a 6.8% annual and -0.6% monthly movement for houses. Darwin led annual growth at 14.1%, followed by Hobart at 12.2% and Brisbane at 8.3%. Sydney's combined rents remain the highest at $913.79 per week despite a 0.5% monthly decline.
| Vacancy Rates – Jul 2026 | ||||||
|---|---|---|---|---|---|---|
| City | Jul 2025 | Jun 2026 | Jul 2026 | |||
| Vacancies | Vacancy Rate | Vacancies | Vacancy Rate | Vacancies | Vacancy Rate | |
| Sydney | 10,841 | 1.5% | 11,957 | 1.6% | 12,782 | 1.7% |
| Melbourne | 9,325 | 1.8% | 8,640 | 1.6% | 9,346 | 1.7% |
| Brisbane | 3,089 | 0.9% | 3,065 | 0.9% | 3,057 | 0.9% |
| Perth | 1,401 | 0.7% | 1,247 | 0.6% | 1,241 | 0.6% |
| Adelaide | 1,348 | 0.8% | 1,096 | 0.7% | 1,035 | 0.6% |
| Canberra | 942 | 1.5% | 1,063 | 1.7% | 1,086 | 1.8% |
| Darwin | 126 | 0.5% | 64 | 0.3% | 67 | 0.3% |
| Hobart | 155 | 0.6% | 185 | 0.7% | 162 | 0.6% |
| National | 37,863 | 1.2% | 39,229 | 1.3% | 40,771 | 1.3% |
Source: SQM Research, July 2026
"The national vacancy rate holding at 1.3% in July suggests there has been some stabilisation in rental availability, although the underlying market remains tight," said Louis Christopher (pictured right), managing director at SQM Research.
"Total vacancies have increased compared with this time last year, particularly in Sydney and Canberra, but five capital cities are still recording vacancy rates below 1%."
Christopher noted that rental affordability pressures remained acute, with national asking rents 7.2% higher than a year ago and particularly strong annual increases recorded in Darwin and Hobart.
While Sydney showed some monthly moderation in asking rents, he said this did not represent a broad-based easing, with Brisbane, Perth and several smaller capitals continuing to record very limited availability.
"Overall, the rental market remains undersupplied," Christopher said. "Until we see a more sustained increase in available rental stock, we expect affordability pressures to remain elevated."
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