Australia's rental market is currently facing significant challenges, with a national vacancy rate at a record low of 0.7%. According to figures from Domain, median rents have climbed to $680 per week for houses and $675 for units, reflecting a $25 increase in the typical advertised rent price. The tight rental market is particularly evident in cities like Sydney, where the vacancy rate stands at 0.6%, and Perth, at 0.3%. Although rent prices have been rising, the growth rate has slowed down as many households struggle to afford the increased costs. Dr. Nicola Powell, Domain's chief residential economist, notes that while the supply of rental properties is incredibly tight, the rate of rent growth is no longer accelerating everywhere, indicating that households are reaching their financial limits. In the first quarter of 2026, Realestate.com.au reported a $30 increase in median advertised rents, further emphasizing the ongoing pressures in the rental market.