Tough Choices on Both Sides: How Canberra’s Rental Market is Squeezing Tenants and Landlords

Canberra tenants are feeling the pinch as weekly rents climb to fresh record highs, with the ACT’s vacancy rate stuck stubbornly below one percent. The squeeze is driving more renters to compete for fewer homes, while some landlords say rising costs have forced them to lift rents or consider selling up altogether.

Rental market strains have become a defining feature of Canberra’s property scene in 2026, affecting public servant newcomers, students in Belconnen, and long-term families in Gungahlin alike. Many are facing the toughest market in recent memory. Housing advocates warn of a spike in tenant hardship assistance applications, while property managers say landlords are fielding dozens of applications per home on listing sites such as Allhomes and Domain.

The Pressure Hits Braddon and Gungahlin

At Braddon’s Griffyn Apartments on Mort Street, one-bedroom units that last year were advertised for $500 per week are now pushing $550—if tenants can even find a vacancy. Over in Gungahlin, new townhouse enclaves like The Establishment are also at capacity, with prospective tenants showing up to Saturday open homes in double digits, property managers report. Eviction applications are slowly on the rise, according to Tenants’ Union ACT, and some renters are seeking support from the ACT Government’s Rental Bonds Assistance program to scrape together up-front costs.

Landlords like those represented by the Property Owners’ Association ACT say rising insurance premiums and a spate of new minimum standards in the Residential Tenancies Act have affected investment-minded Canberrans. Some investors are reportedly consolidating or even selling their rental properties, particularly older stock along Northbourne Avenue, citing increased financial pressure.

Rents, Vacancy and the Numbers That Matter

According to figures from CoreLogic released on June 24, the median rent for a Canberra house has surged to $720 per week—up almost $30 from the same time last year. Apartments are not far behind at a median of $585. The ACT’s city-wide vacancy rate sits at just 0.8 percent, marking the lowest point since 2018. Auction clearance rates hover at 65 percent as rising mortgage repayments cause some investors to exit, but the impact is less immediate in the rental market, where underlying demand—driven by public service hirings and several new federal departments relocating to the city—remains strong. Local property managers say on average, well-priced homes in central suburbs such as Kingston, O’Connor and Dickson lease within 7-10 days, with some attracting 25 applications or more.

Data from ACT Revenue Office shows that 4600 tenants have applied for rental bond assistance in the first half of 2026, up 12 percent year on year. Tenants’ advocacy groups are also receiving increased calls for help regarding lease terminations and rent increases.

What Now for Canberra’s Renters and Landlords?

For tenants, experts suggest early preparation: have references, employment letters, and rental ledgers ready before attending open homes. For those struggling, the ACT Government continues to offer Emergency Rental Assistance and encourages tenants to contact the Tenants’ Union for advice on rent increases and bond disputes.

Landlords, meanwhile, are being urged by the Property Owners’ Association and local agents to stay up to date with new minimum heating standards and smoke alarm requirements under the updated Residential Tenancies Act, which took effect in May. They warn that non-compliance could result in delays or fines.

With vacancy rates unlikely to rise until more stock is built—particularly in Molonglo Valley and Civic—Canberra’s tense rental standoff looks set to persist through the busy spring market. Both sides of the city’s property equation will be watching closely as supply, legislation and economic pressures continue to reshape the ACT rental landscape.