Rental growth has slowed this spring, with Domain’s latest rental report showing that all capital cities have passed their peak growth phases.

For the first time in nine months, quarterly rent increases for both houses and units have stalled across the combined capitals.

Despite this easing, tenants are still facing record-high asking rents in most cities.

“All capital cities remain a landlords’ market, with vacancy rates consistently below 2%,” the report states.

Affordability is a key factor in the slowdown, and it’s expected to continue limiting further growth.

The report highlights a decrease in rental demand, with the number of potential tenants per rental listing falling to its lowest since 2019, suggesting a better balance between supply and demand.

“Demand-side pressures are easing as net overseas migration has dropped by 19% since peaking in March 2023,” the report adds.

Affordability issues are also leading to demographic changes, as more tenants turn to house sharing or multigenerational living to reduce financial strain.

In terms of vacancy rates, Brisbane currently holds the title for Australia’s tightest rental market, with just two vacancies per 100,000 people, according to Top Removals data.