Renting a home in any Australian capital city has become a luxury for many, with new data revealing that you now need a six-figure income just to avoid rental stress. As rental prices skyrocket, the gap between income and affordable housing continues to grow, leaving more and more Australians struggling to make ends meet.
The Struggle to Afford Rent
According to a new analysis by Domain, Australian renters now need at least $112,667 annually to comfortably rent a median-priced house in any capital city. That’s a 51% increase since 2019, and it highlights the ever-widening gap between income and housing costs. Rental stress occurs when households are forced to spend more than 30% of their pre-tax income on rent. As the cost of living rises, more Australians are finding themselves in this position—spending the majority of their income just to keep a roof over their heads.
In Sydney, renters face the most extreme pressures, with a required household income of $135,200 just to rent a typical house without entering rental stress. But it’s not just Sydney—Canberra, Perth, and Darwin also require over $120,000, while even cities like Melbourne and Hobart are pushing the $100,000 mark. So, what does this mean for the average Australian?
Who’s Most Affected?
The income required to rent in capital cities is leaving many households with difficult choices. For people earning the median annual salary of around $88,000, paying for a rental house without facing significant financial strain is becoming impossible. The situation is even tougher for single-income households, who are hit hardest by the rising costs. Troy Sindorff, a 40-year-old disability pensioner living in Brisbane, exemplifies the struggles many are facing.
He and his partner, who is his full-time carer, saw their rent jump from $410 a week to $560 over the past three years. In April, they’re expecting another increase to $650—a price they simply can’t afford. Despite living in an area considered somewhat affordable, Troy said to ABC News, “It’d be impossible for us to stay here. It’s hard, I don’t know what to do. We’re at a loss.” This sentiment is echoed across Australia as families feel the squeeze of rising rents.
The Long-Term Consequences
Experts are warning that the rental crisis is reaching a tipping point. Maiy Aziz, national spokesperson for the Everybody’s Home campaign, says the situation is “dire” for many renters. She notes that households are increasingly forced to make impossible choices between rent, food, medical care, and other essentials. The financial strain is pushing people to make difficult decisions—some are even turning to charity organizations just to make ends meet.
In particular, older Australians are feeling the effects, with some entering aged care prematurely because they can no longer afford to live in the private rental market. For retirees like Dennis O’Loughlin, whose rent now consumes 80% of their income, the stress is overwhelming. He says, “We are not ones for high living… but I can see that lifestyle diminishing.”
A Bleak Outlook
While there’s some hope that rental price increases will slow down, cities like Brisbane are still seeing projected rent rises of 4-5% in the coming year. As rental affordability worsens, many fear that the situation will only get more difficult, particularly for low-income households and those living paycheck to paycheck.
The question remains—what will be done to address this? With the rental market becoming increasingly out of reach for so many, it’s clear that action needs to be taken to make housing more affordable for all Australians. Whether that means increasing the supply of affordable housing or introducing rental price controls, something has to change.
