Rents in Perth have surged by 3 per cent in the first three months of 2026, the fastest growth of any Australian capital city, according to data released by housing data group Cotality on Wednesday. The city's vacancy rate now stands at just 1.2 per cent, the second-lowest in the nation, leaving renters with few options and little negotiating power.
Nationally, rents climbed 2.1 per cent over the quarter, accelerating from 1.2 per cent in the final three months of 2025 and 0.9 per cent in the preceding quarter. Cotality head of research Gerard Burg said rental affordability has deteriorated sharply, with five years of sustained growth adding $202 to the typical household's weekly rent.
Households are now committing a record 33.1 per cent of their gross median income to rent, up from 26.2 per cent in September 2020. 'Until supply catches up meaningfully with demand, rental growth is likely to stay elevated,' Mr Burg warned.
Adelaide also recorded a sharp 2.2 per cent quarterly rent rise, with vacancy rates at just 1 per cent. Nationally, there are only 1.6 vacant dwellings per 100 rentals, down from already low levels a year ago. 'When vacancy rates fall to 1.5 per cent or less, it leaves renters with very little negotiating power and fewer options,' Mr Burg added.
The rental crisis is compounded by rising construction costs, driven partly by the Middle East conflict. Westpac estimates the war has pushed up building costs by up to 10 per cent, threatening project feasibility. NAB economist Gareth Spence noted that insolvencies for construction firms were already elevated before the crisis, with input prices 30 per cent higher than pre-pandemic levels.
Sydney remains the most expensive capital city, with a median weekly rent of $824, compared to Melbourne's $632. Without a significant increase in rental supply, experts say there is unlikely to be any material easing in affordability in the near term.
