CBA sees Australia rental market staying tight as housing backlog persists

By Public Technologies
  • Commonwealth Bank analysis flagged Australia’s rental market as tight for several years due to a persistent housing backlog.
  • National vacancy rate about 1.8% versus a 2015-2019 average near 2.8%; advertised rents up 5.7% across eight capitals.
  • Vacancy rate forecast to edge up to about 2% by end-2027, still below pre-pandemic norms; rent growth seen moderating gradually.
  • ABS CPI rents rose 3.6% in the 12 months to August 2026; seen near 4% during 2027, easing toward 3.5% by end-2028.
  • Tax changes from July 2027 expected to have a small direct impact on rents; yields seen rising from 3.75% to about 4.5% by late 2027.


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