# Rents are up 3.6% in the CPI and 7.3% in asking rents: why the two numbers differ > The ABS says rents rose 3.6% in the year to September. SQM says asking rents rose 7.3%. What each measures and which one to use when setting a rent. - Published: 1 November 2026 - Section: News & Policy - Author: Landlord Weekly Editorial Team - URL: https://www.landlordweekly.com/articles/rent-inflation-3-6-percent-asking-rents-7-3-percent Two respected measures of Australian rents are telling very different stories. The ABS [reported](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release) on 28 October that rents in the CPI rose 3.6% over the year to September, the same annual pace as every month since May. SQM Research says national asking rents were 7.3% higher than a year earlier in the week ending 28 October. **Key takeaways** - The CPI rent index rose 3.6% over the year to September 2026 and 0.2% in the month. It has not changed its annual pace since May. - SQM's combined asking rent was $709.83 a week, up 7.3% on a year ago. Houses were up 7.6% and units 6.8%. - The CPI tracks rents being paid, mostly by existing tenants. Asking rents track new listings, so they move first. - Before you set a renewal, check recent comparable lettings near your property, not a national figure. **3.6% vs 7.3%**: Annual growth in CPI rents (ABS, to September 2026) against national asking rents (SQM, week ending 28 October 2026) ## What each number measures The ABS CPI follows the rents paid on a sample of rental dwellings in each city over time. That includes tenants who signed a lease a year or two ago and have seen only modest increases. The RBA has explained that advertised rents are a [leading indicator](https://www.rba.gov.au/publications/smp/2019/may/pdf/box-c-housing-in-the-consumer-price-index.pdf) of CPI rents, because new rents make up only a portion of the rental stock and pass through to the CPI gradually. SQM's index covers advertised rents, which is the price of properties offered to new tenants right now. In its [weekly data](https://sqmresearch.com.au/property/weekly-rents?t=1&national=1), national house asking rents were $794 a week, up 1.3% over the rolling month, and unit asking rents were $612, up 0.2%. ## Why the gap matters If asking rents stay well above the CPI measure, the CPI measure tends to drift up as leases roll over. That is one reason inflation watchers keep a close eye on rents. It is also why a tenant renewing this year can face a bigger jump than the headline CPI figure suggests. There are limits to that argument. The ABS noted that the September monthly figure was held down by the Commonwealth Rent Assistance indexation on 20 September, and that rents would have risen 0.3% in the month without it. And asking rents are a national average of a market that is uneven. As we reported in our [October rental market issue](https://www.landlordweekly.com/articles/rental-market-interest-rates-october-2026), unit rents were falling in seven of the eight capitals on SQM's measure. ## What this means for landlords 1. **Look at local lettings.** Check what similar properties near yours have actually let for in the past month or two. That is a better guide than either national figure. 2. **Weigh the whole cost of a change.** A good tenant paying a fair rent is worth more than a small increase that leads to weeks of vacancy and re-letting costs. 3. **Think about your tenant's budget.** RBA Deputy Governor Andrew Hauser said on 21 October that [15 per cent of renters are in negative cash flow](https://www.rba.gov.au/speeches/2026/sp-dg-2026-10-21.html). Arrears are more expensive than a modest increase forgone. 4. **Follow your state rules.** How often and by how much you can raise rent, and the notice you must give, are set by your state regulator and your lease. ## Frequently asked questions ### How much have rents risen in Australia? It depends on the measure. The ABS CPI rent index rose 3.6% in the year to September 2026, unchanged since May. SQM Research's national combined asking rent was $709.83 a week in the week ending 28 October, up 7.3% on a year earlier. ### Why is CPI rent inflation lower than asking rent growth? Asking rents measure the price of properties advertised for new tenants. The CPI measures rents actually paid on a sample of rental dwellings, most of which are existing tenancies that move more slowly. The RBA describes advertised rents as a leading indicator of CPI rents, passing through gradually. ### Should I raise rent to the asking rent for my area? Use comparable recent lettings near your property rather than a national average. Check your lease terms and your state regulator's rules on how often and by how much you can raise rent, and weigh the cost of a vacancy against a higher rent from a good tenant. ## Sources - [ABS: Consumer Price Index, Australia, September 2026](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release) - [SQM Research: Weekly rents, national, week ending 28 October 2026](https://sqmresearch.com.au/property/weekly-rents?t=1&national=1) - [RBA: Statement on Monetary Policy, May 2019, Box C: Housing in the Consumer Price Index](https://www.rba.gov.au/publications/smp/2019/may/pdf/box-c-housing-in-the-consumer-price-index.pdf) - [RBA: Fireside chat by Andrew Hauser, Deputy Governor, at Citi's Australia and New Zealand Investment Conference (21 October 2026)](https://www.rba.gov.au/speeches/2026/sp-dg-2026-10-21.html) --- *General information only, not financial, legal or tax advice. Source: Landlord Weekly, https://www.landlordweekly.com/articles/rent-inflation-3-6-percent-asking-rents-7-3-percent*