Rental growth for houses in Australia’s capital cities has finally reached a plateau.

For the first time since 2019, combined-capital house rents remain unchanged for three consecutive quarters, according to the latest Domain Rent Report. Domain Chief of Research and Economics Dr Nicola Powell says house markets have reached an affordability ceiling. But it’s a different story in the unit market, where rent growth is continuing.

Unit rent growth outpaced house rent growth in Sydney, Melbourne, Brisbane, Canberra and Hobart over the March quarter. Although the pace of growth is easing, house and unit rents are at record highs across all capital cities. Powell says in the house market, annual growth has slowed to its lowest point in nearly five years in Sydney and Perth, just over four years in Brisbane and Adelaide and just over three years in Melbourne.

In the unit market, Perth recorded its slowest March quarter since 2018, Adelaide since 2019, Sydney since 2021, and Melbourne and Brisbane since 2022. Hobart and Darwin had their strongest March quarter since 2022.