Renters have regained some optimism as the ultra-competitive market starts to cool.
Weekly confidence levels tracked by ANZ and Roy Morgan have surged 7.9 points for those renting, helping to push the overall consumer index up 2.6 points.
The elevated cost of living and interest rate hikes have been keeping consumer confidence at historically low levels.
The index has been stuck below 80 points for 21 weeks in a row, well under the 111.1 monthly average since 1990.
ANZ senior economist Adelaide Timbrell said renter confidence may have improved off the back of easing pace of growth in rents.
Advertised rents have been rising fast but the latest housing data suggests vacancy rates have started to lift and the rate of growth is slowing.
Ms Timbrell said discussions about government rental policies may be playing a role.
Weekly inflation expectations fell 0.2 percentage points to 5.4 per cent, with the four-week moving average sinking to 5.6 per cent from 5.7 per cent.
Cost of living pressures may be starting to subside but there will be more pain to come.
The Albanese government has held off calls to support households further despite tracking towards a stronger than expected budget surplus.
Assistant Treasurer Andrew Leigh said an “unfunded cash splash” would put upward pressure on prices and fuel inflation.
He said the government was focused on providing targeted cost of living relief that would not throw the Reserve Bank off course.
“We’re constantly looking at what we can do to assist the most vulnerable, but at the same time, you need to make sure that fiscal and monetary policy are working together,” Dr Leigh said.
Asked if lifting the Jobseeker welfare payment would constitute a cash splash, he said the government lifted the rate in the last budget.
“Every Labor budget looks carefully at the rate of Jobseeker,” Dr Leigh said.
Welfare advocates have been critical of the $40 a fortnight increase to the Jobseeker payment and argued it would not do enough to ease pressures on the most vulnerable.
