Rental yields reach their highest level since 2015
A rental yield is a year's rent as a share of the home's value. With values down and rents up, Cotality says yields across the capital cities have climbed to their highest point since May 2015.
Units earn more than houses
Source: Cotality Home Value Index, November 2026.
| Units | 4.7% |
| All dwellings | 3.9% |
| Capital cities | 3.8% |
| Houses | 3.7% |
How yield is worked out
Gross rental yield is one year's rent divided by the home's value. For example, a home earning $600 a week ($31,200 a year) and worth $800,000 has a gross yield of about 3.9%. It is 'gross' because it ignores costs like rates, insurance, repairs and loan interest.
Yields rise when rents grow faster than values, which is exactly what has happened this year. Units tend to yield more than houses because they cost less to buy relative to the rent they earn.
Why this matters for room listers
Renting out a room in the home you already live in has no purchase price, so every dollar of rent goes toward your existing costs. Many owners use room income to help with repayments when rates rise.
- Check how room income is taxed before you start.
- Make sure your lender, insurer and strata (if any) allow it.
- Set clear house rules and put the agreement in writing.
What it means for you
Owners: renting out a room earns income on a home you already live in, without the costs of a second property. Renters: higher yields can draw more investors back, which over time can add rental supply.
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Figures are from the sources above at the time of writing. This article is general information, not financial or legal advice.