Home prices might be rising at a record pace but it's good news for tenants - rent growth has slowed to its weakest pace on record.
The average capital city weekly rent in July was $486, figures from CoreLogic RP Data shows, down 0.3 per cent for the month and up just 0.9 per cent for the year.
RP Data head of research Tim Lawless said that's the slowest annual rent growth recorded since the survey was established in December 1995.
"Rental appreciation continues to be sluggish and can be largely attributed to the ongoing boom in dwelling construction across Australia's capital cities accompanied by record high participation in the housing market from investors," he said.
Over the past month, weekly rents have moved lower across every capital city and over the past three months rents are lower in all cities except for Melbourne, RP Data said.
Mr Lawless said the combination of home values rising at a record pace and rent rises staying sluggish means that rental returns are low and could push even lower in the coming months.
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