Rents have stopped rising in some markets despite a shortage of available homes – a surprising shift that could affect investors and first home buyers.
 
Domain’s latest rental figures suggest affordability pressures may finally be putting the brakes on rent increases.
 
Across the combined capital cities, the latest figures show:
  • House rents rose 7.7% over the year to September but 0.0% over the quarter.
  • Unit rents rose 6.2% in annual terms and 1.5% in quarterly terms.
One possible explanation is that renters are reaching their affordability limits after years of sharp increases.
 
For investors, low vacancies remain encouraging, as they suggest continued demand for rental accommodation. However, conservative rental forecasts and careful cash-flow planning are becoming more important.
 
For first home buyers, slower rent growth could provide some breathing room to build a deposit, although rents remain high.
 
Thinking about buying your first home or an investment property? Let’s work through the numbers to see what you could comfortably afford.