Leanne Jopson , National Executive – Property Management
Australia’s rental market is going through a noticeable shift, with national growth trends easing after years of sharp increases.
While this cooling has brought relief to many renters, the numbers paint a nuanced picture of the challenges and opportunities in the housing sector.
Nationally, according to a recent report from Ray White, rental growth has slowed, dropping from post-pandemic highs of over 15% to around 5% in 2025.
This moderation is visible across several capital cities. Sydney, a city that previously saw rental growth rates at 11.9%, now reports annual growth at 0%. Melbourne, another heavyweight in the rental market, has seen its rate ease from 10.2% to 4.5%. Even Perth, which peaked at an explosive 18.2%, now sits at 5.0%.
However, Brisbane stands out for defying the national trend. Rental growth in Queensland’s capital has accelerated from 4.3% to 8.3% over the year to February, according to Ray White, bucking the overall cooling experienced elsewhere.
The discrepancy highlights unique pressures in Brisbane’s housing market, driven by factors such as population growth, construction constraints, and recent natural disasters. These combined challenges continue to push rental prices higher, making Brisbane an outlier when it comes to rental growth trends.
So, what’s behind the numbers overall? One major driver is household composition. During the pandemic, smaller households became more common, increasing effective housing demand without population growth.
In 2025, average household sizes are gradually returning to pre-pandemic levels, reducing demand and easing rental markets in most cities. Additionally, building activity is slowly gaining momentum, contributing to better housing supply nationally.
Brisbane’s situation, however, remains complex. The city is grappling with post-COVID construction challenges, rising costs, and a skilled labour shortage. Recent events like Tropical Cyclone Alfred have added further strain, taking rental properties offline and worsening already-high demand.
While the easing trends in cities like Sydney and Melbourne are good news for renters, Brisbane continues to face significant pressure, with no immediate relief in sight. This divergence in rental growth highlights the importance of local market nuances when analysing national statistics.
For investors, understanding the driving forces behind these numbers is crucial. While most of the nation may enjoy stabilising rental markets, Brisbane’s story serves as a reminder of the complexities involved in rental market demand.
