Guide
Rental vacancy rates by city 2026: how tight is each capital?
How many rental homes are empty in each capital city, what a healthy vacancy rate looks like, and what it means for rents and for finding a tenant.
By Mossy Taheri, licensed buyer’s agent · Updated
The short answer
Every capital’s rental market was tight in September 2026. Hobart had the lowest vacancy rate at 0.5%, and Canberra the highest at 1.9%, still below the 2.5% to 3% usually seen as balanced (SQM Research).
Vacancy rates in every capital
| City | Vacancy rate | Market |
|---|---|---|
| Hobart | 0.5% | Very tight |
| Perth | 0.6% | Very tight |
| Adelaide | 0.6% | Very tight |
| Darwin | 0.6% | Very tight |
| Brisbane | 0.9% | Very tight |
| Sydney | 1.8% | Tight |
| Melbourne | 1.9% | Tight |
| Canberra | 1.9% | Tight |
What the vacancy rate tells you
- It's the share of rental homes that are empty and listed. Lower means tenants are competing for homes.
- Below about 2.5%, rents tend to rise; above about 3%, they tend to soften.
- City-wide figures hide local gaps: a suburb with many new apartments can have far higher vacancy than its city.
Pair vacancy with rental yields by city and how far rent covers repayments.
Sources
SQM Research residential vacancy rates, September 2026. General information only, not financial advice.
Cite this page: Rising Returns, “Rental Vacancy Rates by City 2026: Every Capital Compared”, updated 6 November 2026, https://risingreturns.com.au/vacancy-rates-by-city/
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Book a free discovery callVacancy rates: common questions
Which city has the lowest vacancy rate?
Hobart, at 0.5% in September 2026 (SQM Research). Canberra had the highest of the capitals at 1.9%.
What is a healthy rental vacancy rate?
Around 2.5% to 3% is usually seen as a balanced market. Below that, tenants compete for homes and rents tend to rise. Above it, landlords compete for tenants and rents tend to soften.
Why does the vacancy rate matter to investors?
A low vacancy rate means a property is likely to let quickly and rents are under upward pressure. A rising rate can be an early sign of oversupply, often from new apartment or estate completions.
General information only. It doesn’t consider your personal circumstances and isn’t financial, tax, credit or legal advice. Speak to a licensed professional before you act.