From Sydney to Hobart: Where rental markets heated up in 2025

Darwin emerged as the national leader in home value and rent growth, with high rental returns supported by lower average house prices, creating a strong investment opportunity in the Northern Territory’s capital.

In 2025, while renting houses remained more expensive than units, yields were lower due to rapid price appreciation.

Conversely, Cotality data showed that while units historically recorded a 40-60 basis-point rental premium over houses, it has since April 2024 soared to over 100 basis points.

Here are Australia’s most expensive and most affordable suburbs:

Sydney – median rent: $817, yield: 3 per cent

The NSW capital has remained the most expensive city in the country to rent, with a median of over $800 per week, while investors’ yields suffered due to the rapid price growth.

Despite having the 30 most expensive suburbs in the country, Sydney recorded the lowest median of all the capital city markets at 3 per cent.

The suburb of Vaucluse in Sydney’s east is the most expensive, with a median weekly rent of $2,310, equating to an annual rent of $120,120.

To find pockets of affordable housing, Sydneysiders must look west with units in Carramar at $460 per week, while the lowest median house rent was in Shalvey at $559 per week.

Perth – median rent: $738, yield 3.9 per cent

Possessing the second-highest median rent nationally, only $80 per week lower than Sydney, Perth’s most expensive suburb list was dominated by houses in the city’s inner suburbs.

Despite a median rent higher than most other capitals, the city’s yield of 3.9 per cent ranked fourth-best in the nation, with owners seeing strong returns.

The suburb of Dalkeith in Perth had the highest median rent at $1,577 per week, nearly $82,000 per year.

On the more affordable end of the list, units in Orelia had the lowest rents in the city at $473 per week, while the most affordable houses were found in Mandurah for $550 per week.

Brisbane – median rent: $708, yield: 3.4 per cent

In the Sunshine Coast capital city, the most expensive suburbs were in the inner city and the west, while the most affordable regions lay to the north or south-west.

With property prices booming in Brisbane, rents have been unable to keep up, and yields have suffered, with a 3.4 per cent return ranking second-lowest nationally.

Houses in Brookfield in Brisbane’s west sat atop the city’s most expensive suburb, with a median weekly rent of $1,130.

Units in Caboolture had the lowest median rents in the city, at $444 per week, while Russell Island had the most affordable house options, at $579 per week.

Darwin – median rent: $688, yield: 6.2 per cent

According to Cotality, Darwin had established itself as a national growth leader in 2025, in both rental and home value increases, with rents jumping by 8.2 per cent over the year.

Additionally, Darwin's yield rate of 6.2 per cent led nationally, despite recording the most significant drop, down 61 basis points from 6.8 per cent 12 months ago to 6.2 per cent.

Houses in Lyons in the city’s north proved to be the most expensive to rent, with a median weekly rent of $908 per week, while units in Bayview pulled in $793 per week.

Units in Karama were the most affordable option for renters in Darwin, with a median rent of $516 per week, while Moulden had the lowest rent for houses, coming in at $598

Canberra – median rent: $683, yield: 4 per cent

In Australia’s capital, median rents climbed by 3 per cent over the year, making Canberra the second-slowest-growing city.

Despite the slowdown, with a gross rental yield of 4 per cent, Canberra was among the stronger-performing capitals,

Houses in Campbell were the most expensive, with a median weekly rent of $980.

Units in Lyons had the lowest rents in Canberra, at $496 per week, whereas the most affordable houses were in Belconnen, at $582 per week.

Adelaide – median rent: $635, yield: 3.5 per cent

Data showed that the majority of Adelaide’s more expensive suburbs were located towards the centre of the city or the beach to the south.

In contrast, the northern and western suburbs provided affordable rental options in both the unit and house markets.

Over the past 12 months, Adelaide’s yields have fallen marginally, from 3.6 per cent to 3.5 per cent in 2025.

Houses in Hyde Park, to the south of Adelaide’s CBD, were the most expensive suburb, with a rent of $941 per week.

Salisbury was the most affordable suburb, with a unit renting for $451 per week, while for houses, Elizabeth South was the most affordable option in Adelaide, at $480 per week.

Melbourne – median rent: $624, yield: 3.6 per cent

Cotality found that despite its size, Melbourne was the second-most affordable capital city, with rents growing at the slowest rate of all capital cities, at 2.9 per cent over the past 12 months.

Rental yields in the Victorian capital have held steady at 3.6 per cent, unchanged from 12 months ago.

Melbourne’s inner suburbs, and the coastal suburb of Brighton in Melbourne’s inner south, had the highest median rent, at $1,388 per week.

Melton proved to be a pocket of affordability in both the unit and house markets, with the lowest weekly rent for units in Melton South at $376 per week and for houses at $418 per week.

Hobart – median rent: $601, yield: 4.3 per cent

According to the data, Hobart remained the most affordable capital to live in, with the difference between rents in its most expensive and most affordable suburbs being under $300.

Similarly to Melbourne, the city’s yields remained steady over the past 12 months, maintaining a return of 4.3 per cent.

Houses in Battery Point were the most expensive to rent in the Tasmanian capital, with a median rent of $773.

Units in Brighton proved to be the most affordable option for renters, with a median rent of $481 per week, while houses in New Norfolk came in at $515 per week.