Despite a decline, Canberra is still the most expensive Capital City in Australia to rent a home.
It follows a trend across the country, which saw the rental market only grow two per cent in the December quarter.
In the latest quarterly report by CoreLogic, this is being attributed to a seasonal lift in rental stock combined with affordability constraints.
While Canberra remains the most expensive capital, rent values have fallen in the territory by 1 point 1 per cent since peaking in June.
CoreLogic predicts population dynamics relating to migration trends are creating variations across capital city rental markets.