Australia's housing market sees falling prices and climbing rents

The Reserve Bank of Australia (RBA) flagged rising concerns that house price declines are spreading beyond Melbourne and Sydney, warning that weaker housing wealth could dampen consumer spending. Board minutes noted a slowdown in housing credit growth and warned that a material weakening of the market may inhibit consumption, potentially reversing the positive wealth‑effect previously observed.

At the same time, rental market data for June shows vacancy rates easing slightly while rents continue to rise across major cities. Sydney posted the highest weekly house rent at $875 and unit rent at $818, with annual house‑rent growth of 9.4 %. Melbourne’s rents also increased, though it remains the most affordable capital. Vacancy rates remain low, contributing to upward pressure on rents despite a modest decline in new supply.

Together, the falling house prices and persistent rent growth highlight ongoing stress in Australia’s housing sector, with implications for household finances and broader economic activity.