Rents rose by 1.6 per cent nationally in the June quarter, down from the 2.1 per cent increase in March, data from Cotality shows.
Despite that, the median property now costs $705 a week.
Living in Sydney costs $841 a week and Hobart, the cheapest capital city, has a median rental of $632.
Combined with a shortage of available homes, it creates a bleak picture for renters.
Vacancy rates have been stuck at 1.6 per cent for two quarters and rental listings are down 17 per cent from the five-year average.
The rate is lower in almost every capital city than it was 12 month ago, when rents were not as high.
But the next quarter might bring a small reprieve with the market likely to soften, Cotality head of research Gerard Burg said.
"One of the things we are asking a question about, and there isn't really a clear answer yet, is whether affordability pressures are somewhat of a constraint to how much rents can increase right now,'' Mr Burg said.
"Households are devoting about a third of their income to rent.
"That's a record high and really speaks to the general pressure".
Changes to negative gearing and the capital gains tax discount, announced in the May budget, have flipped the majority of investor strategies from caring about capital to keeping an eye on yields.
But Mr Burg said blaming the high rent prices - and in turn high yields - solely on the budget was misguided. War in the Middle East, surging cost of living and supply constraints were also significant factors.
Yield went up by 3.7 per cent across the June quarter, reflecting the downturn in property values since the May budget.
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