Australia’s national residential vacancy rate fell to 1.2% in January 2026, down from 1.4% in December. The total number of residential vacancies declined to 37,630 dwellings, reflecting a post-holiday tightening in rental conditions as seasonal listings were absorbed.

The January result reverses much of December’s seasonal lift in vacancies and indicates that rental market conditions remain structurally tight across most capital cities.

Capital city highlights

Sydney: Vacancy rates declined to 1.5%, down from 1.8% in December, with 10,987 dwellings available. The drop reflects strong early-year leasing activity.

Melbourne: Vacancy rates eased to 1.7%, down from 2.0%, with 9,197 vacancies. The city continues to show signs of stabilising following late-2025 easing.

Brisbane: Vacancy rates tightened to 0.9%, down from 1.2%, with 3,339 dwellings vacant. The market remains one of the tightest among the eastern capitals.

Perth: Vacancy rates fell to 0.6%, from 0.7%, with 1,153 vacancies. Perth remains among the most constrained rental markets nationally.

Adelaide: Vacancy rates eased to 0.8%, down from 0.9%, with 1,216 dwellings available. Rental supply remains limited.

Canberra: Vacancy rates declined to 1.4%, from 1.9%, with 870 vacancies. The city experienced a strong post-summer leasing rebound.

Darwin: Vacancy rates fell to 0.8%, down from 1.0%, with 195 dwellings vacant, reflecting tightening conditions after a modest late-2025 rise.

Hobart: Vacancy rates remained extremely tight at 0.4%, with just 112 dwellings available, continuing to rank as one of the tightest rental markets in the country.

Advertised rents analysis

National advertised rents showed renewed upward momentum through early February, with combined rents rising 2.2% over the past 30 days and 7.3% higher year-on-year, indicating that tightening vacancy rates are again placing upward pressure on rental pricing.

The national combined rent average now stands at $683.26 per week, while the capital city average increased to $779.03 per week, reflecting broad-based growth across most markets.

Nationally, house rents were largely steady over the month (-0.8% rolling monthly change) but remain 7.5% higher year-on-year, while unit rents rose 0.7% over the month and are 6.9% higher annually, suggesting continued demand for medium-density accommodation.

Sydney: Combined rents rose 1.7% for the month and are 6.6% higher year-on-year, with house rents averaging $1,133.19 per week.

Melbourne: Combined rents increased 2.2% monthly and 5.2% annually, supported by strengthening unit demand.

Brisbane: Combined rents lifted 1.5% for the month and 8.5% year-on-year, maintaining strong annual growth.

Perth: Combined rents rose 1.9% for the month and 4.7% annually, consistent with persistently low vacancy levels.

Adelaide: Combined rents increased 0.4% monthly and 4.2% year-on-year, reflecting moderate but steady growth.

Canberra: Combined rents rose 1.0% over the month but remain 1.0% lower than a year ago, indicating a stabilisation phase.

Darwin: Combined rents lifted 1.5% monthly and 9.4% annually, marking one of the strongest annual growth rates nationally.

Hobart: Combined rents edged down 0.4% over the month but remain 10.1% higher year-on-year, underpinned by extremely low vacancy rates.

Sam Tate, Head of Property at SQM Research, commented: “The decline in the national vacancy rate to 1.2% in January highlights how quickly seasonal increases in rental supply can be absorbed in Australia’s current market.

“Most capital cities recorded tightening conditions, particularly Brisbane, Perth and Darwin, where vacancy rates are again sitting below 1%.

“With advertised rents rising in many markets early in the year, it suggests tenant demand remains strong. Unless we see a meaningful increase in new rental supply, upward pressure on rents is likely to persist through the first half of 2026.”

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