Housing in Australia

A tight rental market, record asking rents in every capital, and a foreign-buyer ban on existing homes reshape how newcomers should approach the property search.

A rental market still under real pressure

Australia’s rental vacancy rate has sat near historic lows — around 1% nationally in major capitals through 2025–26 — and Domain’s 2026 rental reporting shows record or near-record asking rents in every capital city. As of Domain’s June 2026 data, median weekly asking rents were:

Unit rents run somewhat lower across the board — Sydney units sit around $780/week, Melbourne and Adelaide units around $550–$600/week — but the gap between house and unit rents has narrowed as more people compete for smaller, cheaper stock. In practice this means arriving with proof of income (payslips or an employment contract), rental history or references, and photo ID ready to go the moment you inspect a property — competitive listings in Sydney and Melbourne can draw dozens of applications within 48 hours.

Bonds, leases, and utilities

A rental bond (security deposit) is typically 4 weeks’ rent (higher for pricier properties in some states), lodged with the state’s official rental bond authority — not paid directly to the landlord or agent — and refunded at lease end pending a condition inspection. Standard leases run 6 or 12 months, with rolling periodic leases common afterward. Electricity and gas are deregulated and require you to actively choose a retailer (via comparison sites like Canstar Blue or the government’s Energy Made Easy); water is typically billed by the property owner or utility directly. Setting up power, gas, internet, and a phone plan is usually the first “adulting” task after signing a lease, and can take 1–2 weeks to connect.

The foreign-buyer ban on established dwellings

Since 1 April 2025, foreign persons — including most temporary visa holders and foreign-owned companies — have been banned from purchasing established (existing) dwellings in Australia, a policy explicitly aimed at freeing up existing housing stock for residents. The ban currently runs to 31 March 2027. Key exceptions: purchases that will significantly increase housing supply (e.g. redevelopment, build-to-rent, or commercial-scale projects), workers under the Pacific Australia Labour Mobility (PALM) scheme, and — importantly for many relocating families — permanent residents, New Zealand citizens, and spouses of Australian citizens or permanent residents remain exempt and can buy established homes as normal. Temporary visa holders can still buy new dwellings or vacant land to build on with standard Foreign Investment Review Board (FIRB) approval (an application fee applies, scaled to purchase price). Breaches carry serious consequences — forced divestment orders and fines have been issued (one Melbourne case resulted in a $250,000 penalty) — so any temporary visa holder considering buying should get FIRB advice before signing a contract, not after.