The pace of rental growth has slowed significantly over the past year, according to new analysis from PropTrack.

Nationally, rents increased by 7% in the last 12 months, compared to a 14% rise in the year prior.

PropTrack economic analyst Megan Lieu attributes this to a slight rise in rental property availability.

“Since November 2023, total rental listings have grown by 7.1%, likely driven by investors returning to the market and more people choosing to buy their first home instead of renting,” she explains.

In Sydney and Melbourne, rents grew by 6% over the past year, a notable drop from the 17% growth seen in the previous year.

Brisbane also recorded a slower increase, with rents rising 5%, compared to 10% the year before.

Adelaide remains the standout market, with rents climbing 9% in the past year, only slightly lower than the 10% growth recorded previously.

“Although rental price growth has eased, the cost of renting remains significantly higher than pre-pandemic levels,” Lieu adds.