Australian Rental Affordability Crisis: Income Requirements Soar
A new report reveals that Australian renters now require a substantial annual income to comfortably afford housing. The report highlights a growing affordability crisis, with even high earners facing significant rental stress. The analysis underscores increasing challenges across the nation’s housing market.
Income Thresholds for Comfortable Renting
The 2025 “Priced Out” report, published by the national housing campaign Everybody’s Home, indicates that individuals need to earn a minimum of $130,000 annually to comfortably afford the median national weekly unit rent, which stands at $566. This threshold reflects the escalating cost of rental properties across the country. The report indicates that even six-figure earners are experiencing rental costs exceeding 30% of their income in capital cities and many regional areas.
Rental Stress Across Income Brackets
The report analyzes rental affordability for Australians with incomes between $40,000 and $130,000, finding that rental stress has expanded beyond low-income earners. Rental stress is characterized by individuals allocating over 30% of their income to rent.
Key Findings:
- High Income Requirement: An income exceeding $130,000 is necessary to avoid rental stress in capital cities.
- Unaffordable Cities: Sydney and the Gold Coast are among the most unaffordable cities in Australia.
- Middle-to-High Income Struggles: Australians with middle-to-high incomes are increasingly challenged in finding affordable housing options.
- Significant Income Percentage on Rent: Individuals earning $70,000 annually may spend over 52% of their income on the national median unit rent.
- Renters Earning $100,000: Even renters with an annual income of $100,000 are struggling, allocating 38% of their income to rent.
Expert Commentary
Everybody’s Home spokesperson Maiy Azize noted that a $100,000 salary “used to be considered a secure income,” but “people on this wage are struggling in both cities and regional areas because rents are so staggeringly high.”
Impact on Lower Incomes
The situation is particularly dire for those with lower incomes. Those earning $40,000 per year are facing extreme rental stress nationwide, with rents potentially consuming up to 119% of their income.
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Everybody’s Home urges the government to increase social housing and eliminate investor tax benefits, such as negative gearing and the capital gains tax discount. Azize emphasized that it is “unfair to spend billions of dollars propping up investors and pushing up costs while people on low and middle incomes are left behind.”