In good news for tenants, there has been a slight decline in rents – although the relief may be short-lived.

PropTrack data shows that nationally median rents dropped in 311 house markets and 154 unit markets in the 12 months to May 2026.

REA Group senior economist Anne Flaherty says rental demand is much more focused on inner and middle suburbs.

In NSW, there are 106 suburbs that recorded a decline in rents for houses and 46 for units. across NSW. The biggest drop is in the Clareville house market on the Northern Beaches, where rents dropped 22.4% or $425 per week over the past year.

In Victoria rents dropped in 82 house markets and 36 unit markets with the biggest drop being 19.6% in the Pentland Hills house market.

In Queensland rents dropped in 40 house markets and 29 unit markets. The biggest drop is 18.9% in the Lowood unit market.

In South Australia 33 house markets and 21 unit markets had declines in rents with the biggest drop of 18% in the Glenelg South house market.