Six-figure salary needed to afford average rent
Australian renters require an annual income of at least $130,000 to comfortably afford the national median rent – with even six-figure earners struggling to keep up with soaring housing costs.
The 2025 Priced Out report by national housing campaign Everybody’s Home, released this week, highlights the worsening rental crisis.
It reveals that many middle-income Australians are spending well over 30 per cent of their earnings on rent, a threshold that defines rental stress.
According to the report, a single person earning $130,000 a year can just afford the national median unit rent. Those on lower incomes face even greater challenges.
A person earning $70,000 annually would need to allocate more than half of their income just to cover rent, placing immense financial strain on everyday Australians.
You might like
Even individuals earning $100,000, significantly above the median income of $72,592, are experiencing rental stress across many parts of the country.
The report found that renters in northern Western Australia on $100,000 a year are spending 55 per cent of their income on housing costs, followed closely by those on the Gold Coast (54 per cent) and Sydney (48 per cent).
Other expensive rental regions include the Sunshine Coast (46 per cent), Perth (43 per cent), and Brisbane (40 per cent). Melbourne sits at 38 per cent of the six-figure salary.
Stay informed, daily
The report’s findings reinforce growing concerns about Australia’s rental market, as more Australians find themselves locked out of affordable housing and forced into financial strain just to secure a place to live.
Source: Everybody’s Home
Rental stress reaches crisis levels
Everybody’s Home spokesperson Maiy Azize said the findings highlighted a major shift in Australia’s housing market, with rental stress no longer limited to lower-income earners but increasingly also affecting professionals, essential workers, and middle-class families.
She warned that those on lower incomes were in an even worse position, with renters earning $40,000 a year facing extreme financial distress.
In some cases, rent is consuming more than their entire income, making stable housing virtually impossible.
With a federal election on the horizon, the report urges the next government to prioritise housing affordability.
Everybody’s Home wants an urgent increase in social housing and low-cost rentals aimed at those in severe housing stress.
The campaign group is also pushing to remove tax concessions – such as negative gearing and capital gains tax discounts – for property investors. It argues these policies drive up rental prices and leave lower- and middle-income Australians behind.
“Housing must be a top priority for the federal government. Without action, more Australians will continue to be priced out of safe, decent, and affordable homes,” Azize said.
This article first appeared in View.com.au. Read the original here
