Data indicates that the growth of rental prices is slowing down in major capital cities

After years of acceleration, rental prices appear to be easing slightly. The rate of growth slowed from 1.7% to 1.3% in the June quarter, reaching preandemic averages in Melbourne, Candera, and in Sydney. But Hobart and Darwin have seen significant increases, both picking up speed since last year. The  median increase across the country is just over $1,100 a year. Well, Sydney remains the most expensive place to rent a property.

The median weekly rent is just shy of $800. Despite the slowdown, places to rent are in short supply. The vacancy rate is at a near record low of 1.6%. Through June, there were about 100,000 rentals listed across the country.

That’s nearly 30,000 fewer than usual for this time of year. And some experts say the slowdown could help pull down inflation, increasing the likelihood of an interest rate cut when the Reserve Bank meets next month.

Totality economist Caitlyn Ezie says while the market is stabilizing in some areas, others appear to show early signs of a reaceleration in rental costs. So looking at the pace of growth in rental markets, we have seen a continued easing in that that rate of growth and that has largely happened in the absence of any supply response. So vacancy rates is still holding really quite low at about 1.6% nationally. Uh and so instead that easing in the pace of growth has been driven by demand factors. So we’ve seen the net…