Soaring rents in Australia continue to worsen: Why should you buy a house instead of renting?
Soaring rents in Australia continue to worsen: Why should you buy a house instead of renting?
Betty from Cheong Mei Australia Property specializes in providing property advice to Australian property investors and those living in Australia. Today, I’d like to share SQM Research’s “2026 Rental Forecast Report,” which warns of continued escalating rental pressure in Australia. This serves as a wake-up call for international students and renters in Australia. Why should we consider buying a home? Let’s analyze the data, reasons, and financial logic to provide you with practical advice.
The report shows that rents in major Australian capital cities are expected to rise by another 2% to 4% in 2026. The three major first-tier cities (Sydney, Melbourne, and Brisbane) are particularly affected: Sydney, with the highest rental base, will still see a 2% to 4% increase; Brisbane will experience the strongest increase, projected at 3% to 5%; Melbourne will also be affected by the influx of immigrants, leading to continued rental pressure. This means that rental costs will rise year by year. If you rent now, your monthly expenses will continue to increase, essentially contributing to the landlord’s asset growth rather than accumulating wealth for yourself. Furthermore, for international students and renters in Australia, there is a risk of landlords raising rents when their leases expire—the rent increase could reach levels predicted in the report, making it difficult to manage within their budgets. If you cannot accept the new rent, you will also bear the costs and risks of relocation, including moving expenses, time lost in finding new accommodation, potential homelessness during the transition period, and the pressure of competing for new properties in a tight rental market. More importantly, many landlords are considering selling their properties for profit, further increasing uncertainty: tenants may be notified to move out before their lease expires or face higher rent demands, which is particularly challenging for international students and can affect their academic stability and life plans.
The underlying reasons for rising rents are multifaceted. First, immigration has boosted demand. Since the reopening of Australia’s borders, a large influx of international students and skilled migrants has led to an explosive growth in demand in the rental market, which is especially evident for international students who often face additional uncertainty when changing leases. Second, low vacancy rates exacerbate the problem. Vacancy rates in most cities remain around 1%, meaning a severe shortage of housing and tenants have little bargaining power. Coupled with many landlords considering selling for profit, this makes the risk of relocation for tenants after their leases expire even higher, potentially leading to a hasty search for new accommodation and incurring additional costs. Finally, there is a shortage of housing supply. High construction costs, labor shortages, and slow new home approvals have resulted in supply falling far short of population growth. These three factors combined are making the rental market increasingly tight, further increasing the financial burden on those living in Australia.
Given this reality, I recommend considering homeownership. From a financial perspective, continuously paying rent is like throwing money into a bottomless pit. SQM Research analysis shows that the high-rent environment is accelerating the trend of “buying is better than renting.” If you convert your rent into a mortgage, you not only own an asset but also benefit from the stable appreciation of Australian property. Especially in emerging cities like Brisbane, where house prices are trending upwards, coupled with Australia’s first-home buyer grant and tax incentives, this is highly advantageous for investors. Buying a home avoids rental risks (such as rent increases, relocation costs, and uncertainty caused by landlords selling), provides financial freedom, and, especially in today’s increasingly geopolitical climate, offers a greater sense of security. For international students, this is crucial for building a stable foundation for life.
Of course, it’s essential to act early when buying a home. The SQM Research report, based on scientific data, emphasizes that the rental market will continue to challenge those with essential housing needs. If you are a potential buyer or renter, don’t hesitate any longer—buy a home now and turn pressure into opportunity. As Cheong Mei Australian Property Consultants, we can provide property search and loan advice to help you smoothly enter the market.
In summary, soaring rents in Australia are making renting a heavy burden. According to reports, the rate of increase will intensify in the three major cities, a signal we cannot ignore. To potential buyers and Australian residents, I urge you: don’t let rent devour your wealth; buy a home in Brisbane, Australia as soon as possible and build your future. Time is of the essence—contact Cheong Mei to plan your home!
Soaring rents in Australia continue to worsen: Why should you buy a house instead of renting?
Betty from Cheong Mei Australia Property specializes in providing property advice to Australian property investors and those living in Australia. Today, I’d like to share SQM Research’s “2026 Rental Forecast Report,” which warns of continued escalating rental pressure in Australia. This serves as a wake-up call for international students and renters in Australia. Why should we consider buying a home? Let’s analyze the data, reasons, and financial logic to provide you with practical advice.
The report shows that rents in major Australian capital cities are expected to rise by another 2% to 4% in 2026. The three major first-tier cities (Sydney, Melbourne, and Brisbane) are particularly affected: Sydney, with the highest rental base, will still see a 2% to 4% increase; Brisbane will experience the strongest increase, projected at 3% to 5%; Melbourne will also be affected by the influx of immigrants, leading to continued rental pressure. This means that rental costs will rise year by year. If you rent now, your monthly expenses will continue to increase, essentially contributing to the landlord’s asset growth rather than accumulating wealth for yourself. Furthermore, for international students and renters in Australia, there is a risk of landlords raising rents when their leases expire—the rent increase could reach levels predicted in the report, making it difficult to manage within their budgets. If you cannot accept the new rent, you will also bear the costs and risks of relocation, including moving expenses, time lost in finding new accommodation, potential homelessness during the transition period, and the pressure of competing for new properties in a tight rental market. More importantly, many landlords are considering selling their properties for profit, further increasing uncertainty: tenants may be notified to move out before their lease expires or face higher rent demands, which is particularly challenging for international students and can affect their academic stability and life plans.
The underlying reasons for rising rents are multifaceted. First, immigration has boosted demand. Since the reopening of Australia’s borders, a large influx of international students and skilled migrants has led to an explosive growth in demand in the rental market, which is especially evident for international students who often face additional uncertainty when changing leases. Second, low vacancy rates exacerbate the problem. Vacancy rates in most cities remain around 1%, meaning a severe shortage of housing and tenants have little bargaining power. Coupled with many landlords considering selling for profit, this makes the risk of relocation for tenants after their leases expire even higher, potentially leading to a hasty search for new accommodation and incurring additional costs. Finally, there is a shortage of housing supply. High construction costs, labor shortages, and slow new home approvals have resulted in supply falling far short of population growth. These three factors combined are making the rental market increasingly tight, further increasing the financial burden on those living in Australia.
Given this reality, I recommend considering homeownership. From a financial perspective, continuously paying rent is like throwing money into a bottomless pit. SQM Research analysis shows that the high-rent environment is accelerating the trend of “buying is better than renting.” If you convert your rent into a mortgage, you not only own an asset but also benefit from the stable appreciation of Australian property. Especially in emerging cities like Brisbane, where house prices are trending upwards, coupled with Australia’s first-home buyer grant and tax incentives, this is highly advantageous for investors. Buying a home avoids rental risks (such as rent increases, relocation costs, and uncertainty caused by landlords selling), provides financial freedom, and, especially in today’s increasingly geopolitical climate, offers a greater sense of security. For international students, this is crucial for building a stable foundation for life.
Of course, it’s essential to act early when buying a home. The SQM Research report, based on scientific data, emphasizes that the rental market will continue to challenge those with essential housing needs. If you are a potential buyer or renter, don’t hesitate any longer—buy a home now and turn pressure into opportunity. As Cheong Mei Australian Property Consultants, we can provide property search and loan advice to help you smoothly enter the market.
In summary, soaring rents in Australia are making renting a heavy burden. According to reports, the rate of increase will intensify in the three major cities, a signal we cannot ignore. To potential buyers and Australian residents, I urge you: don’t let rent devour your wealth; buy a home in Brisbane, Australia as soon as possible and build your future. Time is of the essence—contact Cheong Mei to plan your home!