Rents hit a new record high in the past quarter, according to Domain’s latest rental report.

It shows that combined capital city house rents are up 1.9% in the three months to September with the average price of renting a house now $530 per week.

Unit rents are up 6.5% over the quarter, with the average weekly rent for a unit now $490.

Domain chief of research and economics Dr Nicola Powell says the increases are a result of a “misalignment between supply and demand.”

In good news for investors gross rental yields are continuing to rebound from the lows recorded during the height of the pandemic.

“Gross rental yields for houses and units are also improving and are at their highest point on record, so it’s a good time for investors to enter the Australian rental market, which will help alleviate some supply pressure,” Powell says.

Gross rental yields for houses and units are 3.25% and 4.18% respectively.