The Sydney rental market remains tight in September 2026, with vacancy rates below 2 percent across most of the metropolitan area and rents still high.
Property Desk is a contributing writer covering property and public affairs for The Sydney Times.
The Sydney rental market remains tight in September 2026, with vacancy rates below 2 percent across most of the metropolitan area. The market has stabilised after two years of rapid rent growth, but rents remain high by historical standards. The median rent for a house in Sydney is $780 per week, and the median rent for an apartment is $650 per week. Rents are highest in the eastern suburbs and the lower north shore and lowest in western Sydney and the outer south-west.
Vacancy rates are the percentage of rental properties that are vacant and available for rent. A vacancy rate below 2 percent indicates a tight market, where demand for rental properties exceeds supply. A vacancy rate above 3 percent indicates a soft market, where supply exceeds demand.
Eastern Suburbs. The vacancy rate in the eastern suburbs, including Bondi, Coogee, and Randwick, is 1.2 percent. The vacancy rate has been stable for the past six months, indicating a balanced market. The median rent for a house in the eastern suburbs is $1,200 per week, and the median rent for an apartment is $850 per week.
Inner West. The vacancy rate in the inner west, including Newtown, Marrickville, and Glebe, is 1.5 percent. The vacancy rate has been stable for the past six months, indicating a balanced market. The median rent for a house in the inner west is $950 per week, and the median rent for an apartment is $700 per week.
Northern Beaches. The vacancy rate on the northern beaches, including Manly, Dee Why, and Mona Vale, is 1.3 percent. The vacancy rate has been stable for the past six months, indicating a balanced market. The median rent for a house on the northern beaches is $1,100 per week, and the median rent for an apartment is $750 per week.
Western Sydney. The vacancy rate in western Sydney, including Parramatta, Blacktown, and Liverpool, is 2.5 percent. The vacancy rate has increased from 2.0 percent in March 2026, indicating a softening market. The median rent for a house in western Sydney is $620 per week, and the median rent for an apartment is $520 per week.
South-West Sydney. The vacancy rate in south-west Sydney, including Campbelltown, Camden, and Oran Park, is 3.2 percent. The vacancy rate has increased from 2.5 percent in March 2026, indicating a soft market. The median rent for a house in south-west Sydney is $580 per week, and the median rent for an apartment is $480 per week.
Rent growth in Sydney has slowed in 2026 after two years of rapid growth. The median rent for a house in Sydney increased by 8 percent in the year to June 2026, compared with 15 percent in the year to June 2025. The median rent for an apartment increased by 6 percent in the year to June 2026, compared with 12 percent in the year to June 2025.
The slowdown in rent growth is due to an increase in rental supply and a decrease in population growth. The number of rental properties available for rent in Sydney has increased by 15 percent in the year to June 2026, driven by a rise in construction completions and an increase in the number of properties listed for rent by investors. The population growth rate has decreased from 2.1 percent in 2024 to 1.5 percent in 2026, driven by a decrease in net overseas migration.
Renters in Sydney can expect a more balanced market in 2026 than in 2024 and 2025. Vacancy rates have increased in some areas, and rent growth has slowed. However, rents remain high by historical standards, and competition for properties is still strong in the most desirable suburbs.
Renters should be prepared to act quickly when they find a property they like. In a competitive market, properties can be rented within days of being listed. Renters should have their documentation ready, including proof of income, bank statements, and references, and should be prepared to submit an application immediately after inspecting the property.
Renters should also be aware of their rights under the NSW Residential Tenancies Act. The Act limits the amount that rent can be increased during a tenancy and provides protections against unreasonable rent increases. If you believe that your rent increase is unreasonable, you can apply to the NSW Civil and Administrative Tribunal for a review.
Investors in the Sydney rental market can expect stable returns in 2026. Rental yields are approximately 3.5 percent for houses and 4.0 percent for apartments, based on current prices and rents. Yields have increased slightly from 2025, as rent growth has outpaced price growth.
Investors should be aware of the costs of owning a rental property, including council rates, insurance, maintenance, and property management fees. The total cost of owning a rental property is typically 20 to 25 percent of the rent. Investors should also be aware of the tax implications of owning a rental property, including depreciation, negative gearing, and capital gains tax.
The NSW Government has introduced several reforms to the rental market in recent years, including limits on rent increases, changes to the bond scheme, and new minimum standards for rental properties. Investors should be aware of these reforms and ensure that their properties comply with the new standards.
More information about the Sydney rental market is available at Domain Rental Market Report and PropTrack Rental Report.
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