Why Smart Investors Are Turning to Units in 2024

Unit Rents Are Rising Faster Than Houses — Here’s What That Means for Your Portfolio

If you’re a busy professional juggling career, family, and long-term wealth creation, understanding where your next property investment fits in is critical.

According to Domain’s latest Rent Report, rental growth for houses across Australia's capital cities has reached a plateau — remaining flat for three consecutive quarters for the first time since 2019. Domain’s Chief of Research and Economics, Dr Nicola Powell, attributes this to an affordability ceiling in the house rental market. Units, on the other hand, are still on the rise.

Over the March quarter, unit rents grew faster than house rents in Sydney, Melbourne, Brisbane, Canberra, and Hobart. While the pace of growth is easing, unit and house rents are still sitting at record highs in every capital city.

Notably, annual house rent growth has hit multi-year lows across key markets — nearly five years in Sydney and Perth, over four years in Brisbane and Adelaide, and just over three years in Melbourne.

Conversely, despite signs of moderation, unit rents continue to rise steadily. Perth, Adelaide, Sydney, Melbourne, and Brisbane all posted their softest March quarter in several years — but the upward trajectory remains. Meanwhile, Hobart and Darwin experienced their strongest March quarter since 2022.

This chart illustrates the trend clearly:

Annual house rent growth has slowed significantly, reaching its lowest levels in years across major markets. Meanwhile, unit rents continue to show resilience and upward movement — driven by tenant demand and relative affordability.

For investors like you — time-poor professionals seeking long-term capital growth and rental yield — this trend reinforces the growing value of well-located, family-friendly units. Units offer an accessible entry point, strong demand, and greater affordability for tenants, which translates to reduced vacancy risk and reliable cash flow.

If you're considering your next move, this data suggests it may be time to rebalance and explore quality unit opportunities in high-growth corridors.