The average asking price for rentals has steadied across the combined Australian capitals, ending a record stretch of 10 consecutive quarterly increases.
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The cost of renting a house or unit in Melbourne, or a unit in Sydney, has also stabilised after significant periods of growth.
December quarter data released on Thursday by property website Domain showed Sydney remained the most expensive place to rent a house, with an average weekly asking price of $730.
However, Sydney saw no quarterly increase in the average weekly unit rent of $680 for the first time in two-and-a-half years.
Melbourne saw no growth at all in house and unit rental asking prices, remaining steady at $550 and $520 a week respectively.
Not all capital cities experienced a slowdown, as Brisbane house rents rose to another record high of $600 per week.
Domain's chief of research and economics Nicola Powell said while tenants remain under pressure, there is a glimmer of hope that conditions are easing.
"Overall what we're seeing is a slowdown in rental growth across Australia," Dr Powell said.
"Some cities are still rising in rents, but largely speaking we're seeing a slowdown in the pace of gains.
"We're starting to see a shift in rental dynamics and I think that is going to continue into 2024."
Rental prices remain at a record high average of $600 for a house or unit across capital cities.
A slowing in overseas migration and increase in investment activity throughout 2023 are both contributing to rental supply and easing price pressure, according to Dr Powell.
Also helping stabilise rental growth are seasonal vacancies, which tend to increase over summer, and more tenants choosing to house-share with friends or family, she said.
Adelaide and Hobart are the most affordable cities for renting a unit in Australia at $450 per week.
Canberra house and unit rents increased for the first time in a year, with houses going at $680 per week.
Perth's house rents rose for the ninth consecutive quarter to $620 a week, and unit rents for the sixth to $520 a week.
Darwin's median house rents remained steady at $650, while unit rents rose to $540, their highest level since 2014.
Australian Associated Press
