Australia’s Rental Market Reaches Crisis Levels: What It Means for Renters and Investors
The latest Priced Out 2025 report from national housing campaign Everybody’s Home has highlighted the growing rental crisis in Australia, with even six-figure earners struggling to keep up with soaring housing costs.
According to the report, an individual earning $130,000 per year can just afford the national median unit rent, while those on lower incomes face even greater challenges. A person earning $70,000 annually would need to allocate over half of their income to rent, placing them in severe financial strain. Even those earning $100,000 are experiencing rental stress, with housing costs consuming:
- 55% of income in northern WA
- 54% on the Gold Coast
- 48% in Sydney
- 46% on the Sunshine Coast
- 43% in Perth
- 40% in Brisbane
- 38% in Melbourne
What This Means for Renters and Investors
For renters, these statistics underscore the growing affordability challenges, with many forced to make difficult financial decisions just to secure housing.
For property investors, however, the demand for rentals remains exceptionally high. The shortage of affordable housing presents opportunities for those looking to enter the market or expand their portfolios, particularly in high-demand regions.
With rental stress affecting not just low-income households but also professionals and essential workers, the report calls for increased investment in social and affordable housing. Meanwhile, proposed changes to property tax concessions could impact the rental market further, making it essential for landlords and investors to stay informed.
As the market continues to evolve, working with an experienced real estate professional can help renters find the best possible options while ensuring investors maximise their returns. If you’re looking to navigate the current market, whether as a renter or an investor, let’s discuss how I can assist you.