Sydney Rental Growth Continues Through 2025
Cotality’s year-end rental index shows Sydney house rents up 4.9 per cent annually and unit rents up 6.0 per cent.
By Estate Guide Online Editorial1 min read
Photo: Matthew de Livera on Unsplash
Units recorded the faster annual rise
Sydney rents increased over 2025 in Cotality’s rental index, with annual growth of 4.9 per cent for houses and 6.0 per cent for units. The figures appear in its report released on 2 January 2026, covering conditions at the end of December.
The unit result was 1.1 percentage points above the house result. Both measures describe changes over a year; neither is a dollar estimate of the weekly rent for an individual property.
What annual rental growth means
A rental index summarises changes in the measured market. An annual percentage does not mean that every existing lease was increased by that amount or that every new tenant paid the same rise.
Lease commencement dates, property characteristics and local availability can produce different outcomes for different households. A new letting and a continuing tenancy are also distinct situations when comparing actual rents.
Compare like-for-like accommodation
For a household looking for a rental, the relevant question is the cost of suitable homes currently available in its preferred area. The citywide index provides background to that search without replacing specific advertised prices.
Comparisons work best when they match the property type, bedroom count, condition and location. Separate ongoing costs can also affect the total cost of living in a home. Keeping the annual growth figures separate from weekly dollar rents helps explain the trend without implying that a market average is a quote for any particular residence.
Sources
- Home Value Index — rental index charts, December 2025 — Cotality, 2 January 2026
This article is general editorial commentary, not financial or property advice. Figures are drawn from the published sources above and were current at the time of writing.
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