A new report shows rental growth is stronger in regional Australia than in capital cities, with regional New South Wales dominating figures analysed by analytics firm CoreLogic.

Capital city rental rates fell by 0.6 per cent over the 12 months to June.

Brisbane, Adelaide, Perth and Darwin all recorded falling rents - in some cases steeply falling rents - with rental growth also slowing from already low levels in most other capital cities.

"Today's data suggests that in mid-sized and coastal regional markets, rental demand is picking up," said research analyst Cameron Kusher in the report.

"These regions have also been seeing a rise in migration over recent years."

Regional New South Wales commanded the most council areas with the greatest changes in rents, at 16 out of the 25 listed.

Baby boomer bonus?

The only area within a capital city experiencing a jump in rents is Manly in NSW, and CoreLogic said many of the regions listed are mid-sized regional markets with many located in lifestyle locations.

"Perhaps we are seeing evidence of try-before-you-buy in these regions where people are moving into the regional areas and renting before fully committing to a purchase," he said.

Earlier this month, A report from national research company Propertyology found 40 regional markets including Albany, Geraldton, and Bunbury are set to benefit from baby boomers moving from the big cities to regional areas as they reach retirement age.

For unit rentals, New South Wales again came out on top, with 13 regions, and Victoria followed in second place with six council areas with the greatest annual change.

"The fact that units rents are increasing in many coastal locations is potentially reflective of the recovering markets spurred on by a lower Australian dollar and an improvement across the tourism sector," Mr Kusher said.

Meanwhile, stronger-than-expected "core" inflation data released yesterday from the Bureau of Statistics has dropped market odds of a rate cut in August to roughly 50-50.