The top Canberra suburbs for rental growth in 2022 revealed by Ray White Economics

Ray White Economics analysed median rents across the capital to explore where rents had grown and fallen the most in 12 months.

O'Malley houses topped the list for rental growth, rising nearly 30 per cent from a median of $1550 per week last year to $2000 in 2022.

Forrest was a close second with median weekly rent for a house rising from $900 to $1325.

Rental units in Yarralumla also grew from a median of $500 per week to $710 per week.

The only other unit median listed in the top 10 was Mawson, where median weekly unit rents grew from $398 to $580.

Ray White chief economist Nerida Conisbee said the growth was good news for investors who may be looking at purchasing in the capital.

"While price growth will likely stall until we have more certainty as to when interest rates will peak, rents are likely to continue to increase," she said.

She said house rents had stalled in Canberra but unit rents were increasing.

"Despite high levels of new development through the pandemic, it's never been more expensive to rent an apartment," she said.

"This is great news for investors, but is more challenging for renters."

In August, a report by ANZ and CoreLogic found rental affordability had worsened since the pandemic.

The Housing Affordability Report found Canberra renters sacrificed 27.3 per cent of their income to pay their rent, up from 25 per cent pre-COVID.

There were only eight Canberra suburbs identified by Ray White Economics where rents had fallen in the past 12 months.

It was slightly more affordable to rent a house in Deakin in 2022 than in 2021, with the median weekly rent now $850 compared to $945.

Houses in Oxley and units in Amaroo and Hughes also saw declines in median weekly rents of between $45 and $30.

Ms Conisbee said a pick up in international migration and constrained housing supply could see rents continue to trend upwards.

As a result, she expected rental yields would begin to recover.

"Last year was all about price growth but it certainly wasn't about rental return," Ms Conisbee said.

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"Residential rental yields hit their lowest level ever recorded at the start of this year but are now steadily increasing.

"Depending on where you buy, you may be able to balance out lower price growth with an increase in your rental return."

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