The pace of rental growth has eased according to the latest CoreLogic Quarterly Rental Review.
The review, for the second quarter of 2023, shows the monthly rate of rental growth slowed in the June quarter, although rents still remain high.
Rents rose by 2.5% in the June quarter, 30 basis points lower than the pace of growth in the previous quarter.
It is the first time the rate of quarterly rental growth has slowed since November.
CoreLogic Economist, Kaytlin Ezzy, says rental growth softened despite an ongoing surge in overseas migration and a continuing shortage of rental properties.
She says this suggests many tenants are reaching their “affordability ceiling”.
“While rental demand from overseas migrants is likely to remain strong for some time yet, particularly across the largest capitals, we’ve already seen a reduction in domestic rental demand via an increase in the average household size.”
National rents are now 27.4% higher than at the start of Covid.