Renters have been delivered more bad news with new data showing that the number of homes available to rent is at its lowest since 2012.
Over the four weeks to October 1 rental listings nationally fell to just 90,153, a rental shortfall of approximately 47,500 according to CoreLogic Quarterly Rental Review.
"Record high net overseas migration, fuelled by a combination of an increased flow of new arrivals and weaker departure numbers, coupled with a continued shortfall in rental listings, saw the vacancy rates falling to new record lows across both the combined capitals and combined regional markets," CoreLogic Economist and report author Kaytlin Ezzy said.
Rental vacancies stood at just 1 per cent in the combined capitals while combined regionals market the vacancy rate came in at 1.2 per cent.
Despite the low vacancy rate however rental values, the pace of rental growth was down for the September quarter.
Nationally rental values rose 1.6 per cent over the quarter, down from the 2.2per cent rise seen in the June quarter and a full percentage point below the recent peak rate recorded over the three months to April of 2.6 per cent.
CoreLogic Economist and report author Kaytlin Ezzy said there were a number of factors at play driving the slowdown in rental growth amid such limited rental availability.
"Worsening affordability continues to be a significant factor placing downward pressure on the pace of rental growth in recent months," Ms Ezzy said.
"After recording a small dip over the first few months of COVID, national rents have risen for 38 consecutive months, taking rental values 30.4 per cent higher since July 2020 and adding the equivalent of $137 to the median weekly rent, said Ms Ezzy.
She pointed to overall cost of living rises as a contributing factor to rental rises moderating.
"With the rising cost of living adding additional pressure on renter's balance sheets, it is likely tenants have hit an affordability ceiling, seeking to grow their households to share the growing rental burden."
Sydney remains the most expensive capital city to rent in with median dwelling rent at $726 per week.
This is followed by Canberra ($649p/w) and Darwin ($615p/w).
Adelaide ($548p/w) lost the most affordable rental capital title to Hobart ($529 p/w), with Adelaide recording a quarterly rental rise equivalent to $9 p/w while Hobart rents fell -$15 p/w.
Meanwhile the report also revealed the most expensive and cheapest places to rent in Australia's capital cities.
In Sydney the most expensive suburbs were overwhelmingly in the city's eastern suburbs with the highest rent coming out for houses in harbourside Vaucluse, which have a median weekly rent of $2588.
Of the most expensive suburbs in Sydney to rent, houses in South Coogee had the biggest hike over the September quarter with a rise of 7.4 per cent, taking the price to $1,752.
The cheapest places to rent in Sydney were overwhelmingly units in the city's south-west and outer west with the cheapest option a unit in Carramar, which has a median rent of $389.
In Melbourne, renting a house in Brighton is the most expensive option with the median rent on such a property coming in at $1361 weekly.
At the other end of the scale a unit in Melton South is the cheapest rental option in the Victorian capital with the median rent at $345.
Jen Melocco
Previously she lead the editorial team for two of Australia's most read property magazines for Domain, and published within premier Nine media brands The Australian Financial Review and The Sydney Morning Herald.
