Rental Market Growth Slows as Vacancy Rates Rise
National rental growth has moderated to 0.5% in the third quarter, while vacancy rates have ticked up to 2.1%.
The rapid surge in rental prices seen earlier in the year has begun to cool, with national rental growth slowing to 0.5% in the third quarter of 2026. This is a significant decrease from the 2.1% growth recorded in the first quarter of the year.
The national rental vacancy rate rose to 2.1% in September. While this remains well below the pre-pandemic decade average of 3.3%, it suggests that the extreme tightness in the rental market is beginning to ease slightly in some areas.
Recent data indicates a potential pause in the rental surge, particularly for units. This shift may be linked to a reduction in migration numbers and a change in household formation patterns, providing some relief for tenants who have faced consecutive rent hikes.
Despite the moderation, gross rental yields have risen to 3%, offering a silver lining for property investors. However, tenants should still expect a competitive market as vacancy rates remain historically low compared to long-term averages.
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