Revealed: Sydney suburbs with shocking rental price increases

The rental market in Sydney continues to experience upward pressure on prices, with new data revealing tenants are paying more this year than last across most Sydney suburbs.

A trend largely driven by an imbalance between supply and demand with insufficient housing to accommodate the growing number of tenants.

According to PropTrack data, several suburbs across NSW recorded more than 30 per cent year-over-year rent price hikes, while scattered pockets offer rare relief with significant decreases.

MORE: ‘Trap’: first home scheme warning

22 Battery St currently listed for $1,900 per week in Clovelly that has seen a YoY increase of 32.8 per cent

Some suburbs that recorded the greatest year-over-year rental price increases included Wheeler Heights, that saw a 34.6 per cent rise in house rental prices, increasing from $975 in August 2024 to $1,313 in August 2025.

Clovelly experienced a 32.8 per cent increase, with house rental prices rising from $1,725 in August 2024 to $2,290 in August 2025.

North Turramurra recorded a 30.4 per cent increase, with house rental prices climbing from $1,150 in August 2024 to $1,500 in August 2025.

MORE: Exposed: Sydney Suburbs where you’re better off renting

47 Coniston Street currently listed for $1,295 a week in Wheeler Heights, the suburb YoY increase of 34.6 per cent

Certain outliers where rental prices had fallen included unit prices in Lake Illawarra from $540 in August 2024 in comparison to $420 in August 2025, a year-over-year decrease of 22.2 per cent.

In Suffolk Park, house rental prices experienced a year-over-year decline of 16.4 per cent, falling from $1,375 in August 2024 to $1,150 this August.

“There’s a recalibration in the rental market. Vacancies still remain low by historical standards but rental price growth has eased significantly, although rents are elevated after years of record growth,” Rea Economist Eleanor Creagh said.

“We’re not seeing a retreat in rental price pressure but certainly an easing in Sydney, Brisbane and Melbourne (where prices are steady).”

Ms Creagh said it looks like momentum has cooled a little bit in Sydney and Brisbane.

MORE: ‘Exploded’: 500,000 migrants take Aussie homes

Eleanor Creagh

“Sydney, I think, broadly looks like the unit market is leading (for) most capitals, probably a sign that tenants are trading space for location and price, which seems a rational response when we know that household budgets are stretched and rents have increased significantly in recent years,” she said.

With rents at record highs nationally, the big question remains if we will see a reduction in rental medians in the years ahead.

“Look, we can’t rule out ever at this stage – I wouldn’t want to say that,” Ms Creagh said.

“But at the moment, we’re continuing to see that rents are still moving higher but at a much, much slower pace.

“Without a bigger supply response, it’s not likely that we’ll see rents moving backwards.”

QUARTERLY RENTS AUGUST 2025 GREATEST YOY INCREASES NSW

Property Type Suburb Rent August 2025 Rent August 2024 YoY

House North Turramurra $1,500 $1,150 30.4%

House Wheeler Heights $1,313 $975 34.6%

House Clovelly $2,290 $1,725 32.8%

House Collaroy $1,800 $1,380 30.4%

House East Lindfield $1,600 $1,300 23.1%

Unit Kahibah $695 $580 19.8%

QUARTERLY RENTS AUGUST GREATEST YOY DECREASES NSW

Property Type Suburb Rent August 2025 Rent August 2024 YoY

Unit Lake Illawara $420 $540 -22.2%

House Forresters Beach $690 $850 -18.8%

House Suffolk Park $1,150 $1,375 -16.%

Unit Corrimal $475 $550 -13.6%

MORE: Sydney property market heats up as homes smash reserve prices

The post Revealed: Sydney suburbs with shocking rental price increases appeared first on realestate.com.au.