‘Staggeringly high': Australian renters need $130k income to afford average property, report shows

The Guardian

18-03-2025

Australian renters now need an annual income of $130,000 to comfortably rent an average unit, with even six-figure earners facing housing costs exceeding 30% of their income in capital cities and many regional areas, a new report has found.
The 2025 Priced Out report by national housing campaign Everybody's Home showed a single person needs to earn at least $130,000 a year to comfortably afford the median national weekly rent for a unit ($566).
According to SEEK, the average salary in Australia is about $98,000 per year, while the report said the median salary is about $72,592.
The report, which analysed rental affordability for Australians earning between $40,000 and $130,000 a year, found rental stress has now extended well beyond low-income earners.
Rental stress is defined as a person spending more than 30% of their income on rent.
An income of more than $130,000 is needed to escape rental stress across capital cities, the report found, with Sydney and the Gold Coast among the most unaffordable cities in Australia.
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Middle-to-high-income Australians are increasingly struggling to find affordable homes. People earning $70,000 a year would have to spend more than half of their income (52%) on the national median unit rent.
Even renters earning $100,000 per year – well above the median income of $72,592 – are struggling in locations across Australia, spending 38% of their income on rent.
Everybody's Home spokesperson Maiy Azize said 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'.
'The situation is even more dire for those on lower incomes, with people earning $40,000 per year facing extreme rental stress nationwide,' she said.
'They are facing rents that are up to 119% of their income, putting a stable home out of their reach.'
Everybody's Home urged the government to boost social housing and scrap investor tax handouts, such as negative gearing and the capital gains tax discount.
'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,' she said.