Australia rents rise 3.6% in September 2026 as housing inflation cools
Australian rents rose 3.6% in the year to September 2026, unchanged since May, while housing inflation eased to 5.2% and new dwelling costs to 4.7%.
The facts
- The Australian Bureau of Statistics reported on 28 October 2026 that rents rose +3.6% in the year to September, a rate unchanged since May 2026, and 0.2% over the month.
- The agency notes that the biannual indexation of Commonwealth Rent Assistance fell on 20 September 2026, and that without it rents would have risen 0.3% over the month.
- The housing group as a whole rose 5.2% over the year, down from 5.7% in the twelve months to August, and 0.3% on the month.
- New dwelling prices rose 4.7% over the year, down from 5.4% in August, and were flat on the month after a 0.2% rise in August.
- Electricity rose 12.8% over the year, which the agency attributes largely to the ending of Commonwealth electricity rebates, and property rates and charges rose 5.6%, down from 6.2%.
- Headline consumer price inflation was 4.3% over the year, up from 4.0% in August, and 0.8% on the month in original terms.
What it means for your money
- Rent growth has been stuck at 3.6% since May. Glopra's data has Australian prices up 10.8% over the year, so yields are compressing.
- For anyone already letting an Australian property, property rates and charges at 5.6% and electricity at 12.8% land on the cost side of the ledger while rent growth stays flat, so the net margin narrows even as gross rent rises.
- New dwelling costs rose 4.7% over the year but were flat on the month, down from 5.4% annual growth in August, which cools the build-cost side of an off-plan purchase.
- The city spread matters more than the national 5.2%: Darwin at 7.6% and Adelaide at 7.3% are running at roughly double Melbourne's 3.8%.
What to watch
- The October figures are printed for 25 November 2026.
- The Commonwealth Rent Assistance indexation holds the measured rent figure down this month; the underlying monthly move was 0.3%.
- No city-level rent breakdown appears in this release, only the housing group by capital city, so Sydney and Melbourne rent paths are not separable from it.
Sources: Australian Bureau of Statistics https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release