The annual pace of national rental growth gained some momentum in Q4, with rents rising 5.2% over the 2025 calendar year, up from the 4.8% rental increase recorded in 2024 according to figures compiled by data analytics firm Cotality, in their Quarterly Rental Review. This report also showed that Regional rental growth continues to outpace the capitals. Regional rents were up 6.2% in 2025 compared with a 4.8% increase across the combined capitals.
House Vs Units
Unit rents have recorded a stronger trend relative to houses over the past five years, up 47.2% and 41.2% respectively since December 2020, with the pattern of stronger growth evident across every capital city. However, the five-year trend hides periods of pronounced weakness and growth across the unit sector, with the annual change in unit rents falling through the early stages of the pandemic before rising sharply as social distancing restrictions lifted and international borders re-opened. Since mid-2024, annual growth conditions between houses and units has run virtually in parallel.
Rental yields
After holding firm around 3.7% since late 2022, national gross rental yields have trended a little lower through 2025 as home values rose at a faster pace than rents. By the end of 2025, the national gross yield across all dwellings reached 3.56%, the lowest reading since September 2022. Despite the easing, yields remain well above the pandemic lows, where they reached a record low of 3.16% in late 2021.
Source : Cotality Research : Quarterly Rental Review Australia January 2026
