Rents are on the rise across most of the country.

A review by property analytics business RP Data shows national house rents increased by 2.6 per cent in the year to June.

But, the story varied across capital cities, with prices in Perth and Canberra decreasing by five and 3.9 per cent respectively.

Report author Cameron Kusher told AAP employment instability in both cities had contributed to the falls.

He also said a large number of first home buyers in Perth and unit construction in Canberra had driven down demand for rental houses.

Most other cities saw rental prices rise.

Sydney, where prices rose by four per cent, was the star performer.

Some regional markets saw growth for the first time in six years as workers began leaving mining and resource areas and headed back to coastal towns.

"There's been sizeable falls in the mine and resource towns," Mr Kusher told AAP.

"We're starting to see some growth in some of the areas linked to the coastal and lifestyle markets after those markets have seen no growth for the best part of five or six years".

Unit rents remained stagnant nationwide but grew in by 1.2 per cent in capital cities over the last quarter.

By Rebekah Ison
  • Residential rental in Australia is the big sleeper conversation in housing. Rental is seen as a less worthy housing tenure than ownership which attracts most industry lobbying and media coverage. The modest rental growths reported here are out of whack with the growth in purchased real estate nationally. Notionally 1.2% v 8-12%. is the gap. The cost of an 80 m2 2BR apartment around the capital cities is now in the order of $10,000/m2 so $800,000, houses are not much different. At $800/week rent then market is getting thin. So are the net yields to investors which struggle to service debt funding and rely on negative gearing. Wage growth is not matching rising real estate prices. So where too from here?