Australia news live: rental vacancies at record low in most big cities and prices rising

Key events13m agoCheaper homes outpace luxury price growth25m agoRental market is tightest on record as rents rise $25 a week30m agoWelcomeShow key events onlyPlease turn on JavaScript to use this featureCheaper homes outpace luxury price growthJonathan BarrettProperties valued below the price caps of the federal government’s 5% deposit guarantee scheme are rising faster than more expensive homes, according to analysis by Cotality.Over the first six months since the scheme’s expansion, homes under the price caps increased in value by 6.7%, outpacing the 3.6% rise recorded for properties valued above the caps.The 5% guarantee slashed the deposit requirements for a loan, reducing the savings wait time for many first-time homeowners.The government significantly raised price caps in October, which allowed first home buyers to purchase properties worth up to $1.5m in Sydney and $950,000 in Melbourne.Cotality says several factors may explain the price movements with some buyers fast tracking their purchases in anticipation of increased competition. Investors have also been very active, and may have bid up prices, according to the property analytics company.Cotality says: “Overall, it is likely the first home buyer deposit guarantee will gradually lose its stimulatory power, with more homes exceeding the price thresholds and a growing portion of prospective buyers running into a finance hurdle that is set to rise further.”There have been mixed reactions to the low deposit scheme. While it helps first home owners better compete with investors, economists have warned it may also accelerate prices, making it harder for prospective buyers to find an affordable home.Rental market is tightest on record as rents rise $25 a weekLuca IttimaniFigures from Domain show that the rental market is tighter than ever, adding $25 a week to the typical advertised rent price.Median rents in capital cities have climbed to $680 a week for houses and $675 for units. Price growth had slowed in 2025 but has now picked up in most cities.The national vacancy rate is at a record low 0.7%, with levels of vacant rental stock at record lows in Sydney (0.6%), Perth (0.3%), and Darwin and Hobart (0.2%). Melbourne, the city with the highest vacancy rate, is sitting at just 1%, down from 1.6% in December.With so few properties on the market, rents would be growing even faster if renters could afford to pay more – but they can’t, says Domain’s chief residential economist, Dr Nicola Powell. double quotation markVacancy rates are lower than ever and supply remains incredibly tight, but rent growth is no longer accelerating everywhere. That tells us households simply can’t stretch any further. Realestate.com.au found median advertised rents are up $30 a week in the first three months of 2026, to $680 a week, in data also released today.WelcomeGood morning and welcome to our live news blog. I’m Martin Farrer with the top overnight stories and then it will be Nick Visser with the main action.Mark Butler told the ABC last night that the Albanese government’s sweeping changes to the national disability insurance scheme are expected to save the federal budget $35bn over four years. More coming up.Data on the housing market today shows that properties valued below the price caps of the federal government’s 5% deposit guarantee scheme are rising faster than more expensive homes. Another set shows how the rental market is tigher than ever before. Details coming soon.