Australians Now Need At Least AU$130K To Afford A Typical Rental Unit: Report

A recent report has revealed that Australians, including those earning six-figure salaries, are struggling with rental stress, with a single person needing at least AU$130,000 a year to afford a typical unit.

The 2025 Priced Out report by the national housing campaign group Everybody's Home highlights that a single person must earn at least AU$130,000 annually to comfortably cover the average weekly rent for a unit across the country.

Rent in capital cities is even higher, driving up income requirements. Even high earners are seeing housing costs eat up more than 30% of their income, particularly in major cities and many regional areas.

Rental stress hits middle-class earners

The report revealed that rental stress was no longer limited to low-income earners. Australians earning between AU$40,000 and AU$130,000 a year were increasingly struggling to find affordable places to live. This meant, someone making AU$70,000 annually would have to spend more than half of their income just to cover the national average rent for a unit.

Even those earning AU$100,000 a year -- well above the national median income of AU$72,592 -- were facing difficulty in many parts of Australia.

"Rental stress is no longer confined to those on lower incomes – it's affecting professionals, essential workers, and middle-income families who simply can't keep up with soaring rents," pointed out Everybody's Home spokesperson Maiy Azize.

Capital cities and regional areas struggling the most

The report showed that major cities like Sydney and the Gold Coast were particularly hard-hit by high rents, with low-income earners in these areas facing extreme rental burdens, ABC News reported.

For example, a person earning AU$40,000 annually would spend 102% of their income on rent in Sydney. Even those earning AU$60,000 would still pay 73% of their income on rent.

The Gold Coast also saw rents taking up a huge portion of people's income, with rent accounting for 112% of net income for those earning AU$40,000. Even people earning AU$130,000 saw rent take up 43% of their income in the region.

"The situation is even more dire for those on lower incomes, with people earning $40,000 per year facing extreme rental stress nationwide. They are facing rents that are up to 119 percent of their income, putting a stable home out of their reach," Azize added.

Other Australian cities like Perth, Brisbane, Melbourne, and Canberra were also experiencing worsening affordability. Rent in these cities was still a burden for anyone earning AU$100,000 or more.

In Northern Western Australia, high-income industries like mining have made rental markets particularly unaffordable.

There are a few exceptions to the rising rent prices. Areas like West Queensland, Kangaroo Island, and Northern South Australia offer more affordable rents, though even in these areas, rents consume 25-38% of an AU$40,000 annual income.

Government steps toward solutions

Housing Minister Clare O'Neil acknowledged the issue and pointed to the government's plan to build 55,000 social and affordable homes over the next five years, calling it the largest housing initiative in Australian history.

"I want people to know that I really do understand the pressure that this housing crisis is putting on people, whether they need social housing, are renting, or looking to buy a home — and I'm dedicating every day to turn this housing crisis around," she told the ABC.

However, Shadow Housing Minister Michael Sukkar criticized the government's slow progress in building these homes.

Meanwhile, the report stated that even though there have been recent changes to rental protections, these measures often fall short of what's needed.

Eighteen months ago, the national cabinet agreed to strengthen renters' rights with "A Better Deal for Renters." However, the report suggested that more needs to be done to ease the burden on renters.