While rental growth has slowed significantly, national median rents have still reached a record high.

The latest REA Group Rental Report reveals that nationally advertised rents rose by 1.6% in the December quarter, reaching $620 per week.

In capital cities, the median rent is now $640 per week, while regional markets remain unchanged at $550 per week.

After three years of rapid increases, rents are now growing at their slowest pace since 2021. Brisbane (1.6%) and Canberra (3.3%) were the only capital cities to record rent rises in the quarter.

Although no markets saw declines, asking rents in Sydney, Melbourne, Adelaide, Perth, Hobart, and Darwin remained steady compared to the previous quarter.

Despite slower rent growth, investors will be pleased that gross rental yield remains unchanged over the past year.

As of December 2024, the national gross rental yield was 4.4%, the same as in December 2023. While there were minor fluctuations across capital city and regional markets, they were generally minimal, according to the report.

Looking ahead, renters will have more options in 2025.

The latest Knight Frank Build to Rent Update estimates that 8,900 dedicated Build To Rent apartments are currently under construction nationwide, with a further 20,000 units approved for development over the next five years.