12-06-2025
Revealed: 20 suburbs where rents will keep rising
Rents are set to continue rising in at least 20 regions across the country over the next 12 months, with rental stock still a third below pre-pandemic levels and experts predicting a long road to recovery.
A new report provided exclusively to News Corp by property investment advisory, InvestorKit, reveals the markets under the most pressure based on vacancy rates, supply levels, rental yields, affordability, and long-term demand.
While rental growth has moderated compared to previous years, regions in Western Australia, South Australia and Queensland continue to lead the country.
InvestorKit has identified Unley in Adelaide as a standout suburb for future rental growth, with its median house price of $1.4m making renting significantly cheaper than buying, even with anticipated rate cuts.
It also highlights Mundaring in Perth, which has seen rents surge 69 per cent over the past four years, combined with persistently low vacancy rates and limited new supply.
In Brisbane, Loganlea, The Gap, and Wynnum-Manly are tipped to see continued rental growth due to their relative affordability compared to house prices and a lack of new housing supply in these areas.
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InvestorKit CEO Arjun Paliwal said despite interest rates falling, housing supply was still well below demand, which would keep upward pressure on rents in 2025 and beyond.
'Australia's rental crisis has now entered its fourth year and while there has been some relief, for example, national 'for rent' listings and vacancy rates have improved slightly, both metrics remain significantly below their pre-Covid levels,' Mr Paliwal said.
'This is not a temporary issue. It is a chronic condition driven by long-standing structural problems: a sustained lack of private rental supply, limited diversity in rental options, insufficient social housing, and an ongoing shortfall in new housing supply that cannot be quickly resolved.'
The latest vacancy rate data from SQM Research reveals the national vacancy rate held steady at 1.2 per cent in May, down from 1.3 per cent in April.
Nationally, combined rents average $649 a week, ranging from a high of $854/week in Sydney, to $543/week in Hobart.
SQM Research managing director Louis Christopher said it was likely the nation would see 'ongoing elevated rents for a long period of time', until the tenancy demand/supply ratio was more balanced.
'That's not likely to happen until such time as we experience a slow down in population rate and a meaningful increase in new dwelling completions,' Mr Christopher said.
REGIONS WHERE RENTS ARE SET TO CONTINUE TO RISE
1. Unley, Adelaide
2. Mundaring, Perth
3. Loganlea, Greater Brisbane
4. The Gap - Enoggera, Brisbane
5. Wynnum - Manly, Brisbane
6. Wyong, Greater Sydney
7. Hobsons Bay, Greater Melbourne
8. Hobart - North East, Greater Hobart
9. Bathurst, NSW
10. Dubbo, NSW
11. Inverell - Tenterfield, NSW
12. Tamworth - Gunnedah, NSW
13. Goulburn - Mulwaree, NSW
14. Albury - Wodonga, NSW/Victoria
15. Bendigo, Victoria,
16. Devonport, Tasmania
17. Rockhampton, QLD
18. Toowoomba, QLD
19. Geraldton, Western Australia
20. Albany, Western Australia
