Rent Prices Across Australia: Which State Has the Cheapest Rentals?

The dream of moving to Australia often meets the reality of its housing market. As the country’s population grows and major cities like Sydney and Melbourne become increasingly dense, the question of where to find the cheapest rentals Australia 2025 is paramount for immigrants, students, and interstate movers seeking financial stability.

Navigating the Australian rental market requires more than just looking at capital city averages. The overall winner for affordability is often hidden in the balance between capital city prices, regional options, and overall cost of living.1 While the entire country faces a rental crisis Australia, significant differences exist across states and territories. This comprehensive guide breaks down the median weekly rent Australia by state to identify where your housing dollar stretches the furthest.

The National Rental Landscape: An Unprecedented Crisis

Australia’s rental market has entered a period of extreme tightness. As of late 2024, the median rent across all combined capital cities has soared to over $650 per week for both houses and units, marking a critical tipping point in rent prices across Australia comparison. The national rental vacancy rate Australia by state remains near historic lows, putting intense upward pressure on rents nationwide.

For a prospective immigrant or new resident, understanding this environment is crucial: you are entering a competitive market. Choosing the right state can save you tens of thousands of dollars per year. To illustrate this, the gap between the most expensive and cheapest capital cities is now well over $200 per week.

The High-Cost States: Sydney, Canberra, and the Price Ceiling

Unsurprisingly, the two major economic and political hubs, New South Wales (NSW) and the Australian Capital Territory (ACT), hold the title for the most expensive rental markets. New arrivals and skilled workers often target these areas for employment, which only exacerbates the demand and tight supply.

New South Wales (NSW) – The Priciest Choice

Sydney remains the nation’s least affordable capital city.2 With median house rents approaching $780 per week and unit rents around $750 per week, living here requires the highest percentage of income spent on rent Australia. Even with higher average salaries, the severe cost of housing drastically impacts quality of life.

• House Median Rent (Sydney): ~$780/week3
• Unit Median Rent (Sydney): ~$750/week4

Australian Capital Territory (ACT) – Compact and Costly

The ACT, home to Canberra, consistently ranks highly for rental prices. While the prices for units may appear slightly lower than Sydney, houses here command high rents, typically $700 per week. The limited geographic size and concentrated government workforce drive demand, making it one of the most expensive non-CBD areas in the country.

The Tight and Surging Markets: WA, NT, and Queensland

The next tier of states shows rapid growth, often fuelled by local resource sectors and post-pandemic internal migration. Western Australia, the Northern Territory, and Queensland have seen significant rental inflation, challenging their historical reputation for relative rent affordability.

Western Australia (WA) – The Fastest Growing Rents

Perth’s rental market is extremely tight. While its median rents for both houses ($700/week) and units ($600/week) are slightly below Sydney and Canberra, the annual rate of growth has been the fastest in the country. The mining industry boom and high state wages underpin the market, leading to the question: Why is rent so high in Perth 2025? The answer lies in chronically low vacancy rates (among the tightest nationally) and strong employment.

Northern Territory (NT) – High Cost, High Demand Pockets

Darwin is a unique market. Its median house rent ($720/week) is one of the highest nationally, reflecting the demands of transient workforces and the limited housing stock. However, unit rents are more moderate (~$580/week), and affordable suburbs are typically found in the satellite city of Palmerston. For those targeting NT, knowing the local market nuances is essential.

• Darwin median rent 2025 (House): ~$720/week
• Darwin median rent 2025 (Unit): ~$580/week5

Queensland (QLD) – Post-Pandemic Migration Strain

Brisbane has experienced a prolonged and steep period of rental growth due to massive interstate migration. While its growth may be easing slightly, the current median rents for houses ($660/week) and units ($630/week) place it firmly in the expensive bracket. The affordability debate regarding Rent affordability Sydney vs Melbourne is increasingly including Brisbane as its costs climb closer to the southern capitals.

Australia’s Most Affordable States to Rent

The quest to find the most affordable states to rent in Australia leads to the southern and western territories of South Australia and Tasmania. These two states currently offer the best balance of lower costs and growing lifestyle appeal for those where to move for cheaper rent in Australia.

South Australia (SA) – The Cheapest Capital City for Units

South Australia, specifically Adelaide, has emerged as one of the best value options in the country, especially for unit renters.

While Adelaide house rents have seen strong growth, units remain significantly more affordable than in any other major capital. Adelaide is the clear winner for the cheapest capital city to rent Australia for units.

• Adelaide vs Melbourne rent prices: Adelaide is substantially cheaper across all dwelling types.
• Median Unit Rent (Adelaide): ~$520/week (The lowest among all capital cities).6
• Median House Rent (Adelaide): ~$620/week (More affordable than Perth, Brisbane, Sydney, and Canberra).7

Adelaide’s affordability makes it an increasingly popular destination for new arrivals and students looking for a lower cost of renting in Australia 2025.

Tasmania (TAS) – Highest Value in Regional Areas

Tasmania is another highly affordable option, but its value proposition differs from Adelaide’s. Hobart’s median house rent is competitive ($580/week), and its unit rent ($490/week) is only fractionally lower than Adelaide’s.

The real savings in Tasmania come from its regional rental markets. The median rent regional Tasmania is often one of the lowest in the country.8 While prices have increased, a move to areas outside Hobart—such as the North West Coast or the Midlands—offers a genuine pathway to cheapest regional rentals Australia.

• Cheapest units to rent in Hobart: Hobart consistently offers units near the bottom of the national capital city price list.9
• Is it cheaper to rent in Tasmania or South Australia? Generally, for a capital city house, the cost is comparable. For a capital city unit, Adelaide is slightly cheaper. For regional houses, Tasmania offers slightly better value.

 Deep Dive: Capital vs. Regional Affordability

While capital city costs are the primary concern for most movers, the regional market provides crucial context. The median weekly rent combined regionals (around $550/week) is significantly lower than the combined capital average ($650/week).10

Why Regional Renting is Key

1. Lower Entry Price: The rent for a 1 bedroom apartment Australia comparison shows that regional areas consistently offer lower median prices.11 A small house in a town in Regional NSW or Regional QLD, away from the coastal hot spots, is often the entry point to genuine affordability.
2. Affordable Suburbs: Even within the expensive major cities, focusing on specific suburbs offers relief. For instance, looking for the cheapest suburbs to rent in Melbourne (such as Melton or the outer north) reveals pockets of affordability that defy the high metropolitan average.12
3. Job Market: Regional areas often benefit from median rent regional Tasmania being tied to a more diverse, non-white-collar employment base, which can result in more stable, if slightly lower, rental inflation than the hyper-competitive capital city markets.

Understanding the Dynamics: Supply, Demand, and Salary

Rental costs are not just about the weekly figure; they are a function of market pressure and local wages.

Vacancy Rates: The Pressure Cooker

The rental vacancy rate Australia by state is the single best indicator of market pressure. A low rate (under 1.0%) signifies intense competition and guarantees rental increases.

• Tightest Markets (Highest Pressure): WA, SA, and VIC often have the lowest vacancy rates, meaning competition is fierce, and securing a lease is difficult.
• Eased Markets (Higher Vacancy): ACT and TAS often report higher vacancy rates, which indicates slightly less competition and more stability for renters.

Income vs. Rent: Percentage of Income Spent on Rent Australia

A better measure of true rent affordability is the proportion of an average salary required for rent.

The data confirms that while Melbourne offers a lower rent percentage, Adelaide (SA) and Hobart (TAS) require the lowest total weekly outlay, making them the most compelling choices for budget-conscious tenants.

Your Strategy for Cheaper Rent

The search for the cheapest rentals Australia 2025 leads to a clear winner: South Australia. Adelaide provides the lowest median unit rent among all major capital cities and maintains one of the most affordable house rental markets. Tasmania and its regional towns are close runners-up, offering great value outside the capital.

If you are moving to Australia for cheaper rent, your strategy should be:

1. Prioritise Adelaide (SA): Focus your search on units in Adelaide to secure the best value.
2. Explore Regional Tasmania: For a lower population density and a truly reduced cost of living, look to regional areas in Tasmania.
3. Factor in Total Cost of Living: Remember that high rents in Sydney or Darwin are often offset by higher local salaries, but the initial cash flow strain remains significant.

Choose your destination not just on job prospects, but on the true cost of renting in Australia 2025 to ensure a financially successful transition.