Reasons to Consider Leaving Capital Cities for Affordable Rentals

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Feeling like renting costs more nowadays is accurate because it indeed has become pricier.

Recent data from the Australian Bureau of Statistics highlights that rents have been rising consistently since the COVID-19 pandemic, particularly in capital cities.

In certain states, this has meant an increase of over $250 per week compared to rates before the pandemic.

How does your state compare?

Over the past six years, rents have surged in every state and territory.

Back in 2019, NSW and the ACT had the highest median rents at $480 per week. Fast forward to April 2025, and NSW still tops the list at $650 a week.

Western Australia has had the steepest rise in rents — jumping 75 per cent from $350 to $613 a week.

Tasmania has the lowest median rent, but even there, prices have climbed.

Tasmanians now pay $430 a week on average, up from $270 before the pandemic.

A chart showing median rental price changes across the country.

Western Australia has had the steepest rise in rents, but NSW has the highest median rental price. Source: SBS News

Here’s how median weekly rent looks across the country:

NSW: $650 (Previously: $480)
Western Australia: $613 (Previously: $350)
ACT: $595 (Previously: $480)
Northern Territory: $560 (Previously: $430)
Queensland: $560 (Previously: $380)
Victoria: $520 (Previously: $385)
South Australia: $495 (Previously: $325)
Tasmania: $430 (Previously: $270)

A graph comparing rental prices in regional areas versus the city.

While rental price increases in capital cities have finally slowed, living in regional areas remains more affordable. Source: SBS News

Is living further from the CBD cheaper?

We’ve always known city living comes at a premium — but that dynamic briefly flipped during the pandemic.

Currently, rents in capital cities remain elevated, although the rate of increase has decelerated. As of April 2025, annual rental inflation in these areas has slowed to approximately 5.5 percent, a decrease from its peak of 8.5 percent in late 2023.

But that’s still an increase from the pandemic era, where rents in capital cities actually fell. With international borders closed, temporary rent freezes, and a wave of people moving out, city demand dropped and vacancies rose.

At the same time, rents in regional areas rose, driven by people relocating and tighter supply.

While rents in some regional areas have caught up, it’s still a more affordable rental option than the CBD — though the gap has narrowed in recent years.

A chart looking at costs of moving further away from the city.

The data says it could be cheaper to live just outside of the CBD. Source: SBS News

Should you stay or should you go?

Many renters are left wondering: in the face of rental hikes, is it cheaper to move or stay put?

The data suggests rent increases have become both larger and more common since the pandemic — no matter if you move or not.

Since mid-2022, the majority of properties (80-95 per cent) with new tenants saw rent hikes compared to the previous lease. This hit a high of 94 per cent in early 2023 and eased to 83 per cent in April 2025.

Existing tenants haven’t been spared either. Around 82 per cent of renters who stayed in place experienced a rent increase by late 2023.

A chart showing rental increases for existing tenants.

Even if you choose to stay, you might still be hit with a rental increase. Around 82 per cent of renters who stayed in place experienced a rent increase by late 2023. Source: SBS News