A new report from national housing campaign Everybody’s Home has delivered a stark warning: Australian renters now require an annual income of at least $130,000 to comfortably afford the median rent for a unit. The 2025 Priced Out report reveals that the current rental market has pushed housing costs to such an extreme that even those earning six-figure salaries in capital cities and many regional areas are burdened by rental expenses that exceed 30% of their income.
According to the report, the national median weekly rent for a unit is $566. For a single person, this translates to a need for a minimum annual income of $130,000 to avoid falling into the grip of rental stress—defined as spending more than 30% of one’s income on rent. In a country where SEEK data shows the average salary is about $98,000 and the median salary is only around $72,592, these figures paint a grim picture of affordability and economic inequality.
The Numbers Behind Rental Stress
The Priced Out report highlights a disturbing trend: rental stress is no longer confined solely to low-income earners. The analysis, which looked at income levels ranging from $40,000 to $130,000 per year, found that even those on relatively high incomes are struggling. For instance, individuals earning $70,000 a year are forced to allocate a staggering 52% of their income to rent, while even those earning $100,000 spend around 38%—well above the 30% threshold typically used to define rental stress.
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Maiy Azize, spokesperson for Everybody’s Home, remarked, “A $100,000 salary used to be considered a secure income. But now, people on this wage are struggling in both cities and regional areas because rents are so staggeringly high.” In many parts of Australia, particularly in Sydney and on the Gold Coast, rental costs have soared to levels that put home stability out of reach for a significant portion of the population.
Economic Inequality and the Housing Crisis
The implications of the report extend far beyond the immediate impact on renters. With the average Australian salary at $98,000 and the median at a mere $72,592, the reality is that the vast majority of the population falls well short of the income needed to escape rental stress. This economic disparity not only exacerbates inequality but also limits the ability of lower and middle-income households to save, invest, or even spend on essential services.
For those earning as little as $40,000 a year, the situation is dire. The report indicates that in some regions, these individuals may be forced to spend up to 119% of their income on rent—a level of financial strain that leaves no room for other necessities such as food, healthcare, or education. This unsustainable burden is a key driver of the housing crisis in Australia, as it forces families into perpetual financial instability and increases the risk of homelessness.
The Policy Debate: Boost Social Housing and Scrap Investor Tax Handouts
In response to these alarming statistics, Everybody’s Home is urging the government to take decisive action. The report calls for a significant boost in social housing investment to provide affordable rental options for those who are priced out of the private market. Additionally, the campaign is calling for the abolition of investor tax handouts, such as negative gearing and the capital gains tax discount, which are seen as contributing to the escalation of rental prices.
“These policies have funneled billions of dollars into the hands of property investors, driving up costs for everyday Australians,” Azize explained. “It is unfair to spend billions propping up investors while people on low and middle incomes are left behind.” The argument is that reallocating these funds towards the development of affordable housing could alleviate rental stress and reduce economic inequality across the country.
Regional Disparities in Rental Affordability
While major cities like Sydney and Melbourne often dominate the conversation around housing affordability, the report also sheds light on significant issues in regional areas. Despite lower overall rents in some regional locations, the lower average incomes mean that rental stress remains a critical problem even outside the big cities. In many regional areas, even those earning above the national median are burdened by rental costs that consume a disproportionate share of their earnings.
This disparity underscores a broader challenge: the need for tailored housing policies that address both urban and regional contexts. A one-size-fits-all approach is unlikely to succeed in a nation as geographically and economically diverse as Australia.
The Human Cost of Rental Stress
Beyond the numbers and policy debates, the human cost of rental stress is profound. Families and individuals spending excessive portions of their income on housing are forced to make difficult choices. Essential expenses such as nutritious food, healthcare, education, and transportation often take a backseat when rent consumes a large share of the budget. This not only affects physical well-being but also takes a toll on mental health, with chronic financial stress leading to anxiety, depression, and a diminished quality of life.
For many Australians, the dream of home ownership seems increasingly out of reach. The relentless rise in rental prices contributes to a cycle of instability and insecurity, where long-term financial planning becomes nearly impossible. The report’s findings serve as a sobering reminder of the need for comprehensive reform in the housing sector—one that prioritizes the welfare of renters over the profits of property investors.
Broader Economic Implications
The issue of rental affordability has far-reaching economic implications. High housing costs can stifle economic growth by reducing disposable income and limiting consumer spending. When a large segment of the population is forced to allocate an unsustainable portion of their earnings to rent, it creates a drag on the overall economy. In addition, the stress and instability associated with high rental costs can lead to lower productivity and increased reliance on social services.
Policy measures that address rental affordability could have a multiplier effect, stimulating economic activity and fostering a more stable and prosperous society. By investing in social housing and reevaluating tax policies that favor investors, the government could help ensure that housing costs remain manageable and that Australians have the means to achieve a better standard of living.
Conclusion: A Call for Urgent Action
The 2025 Priced Out report by Everybody’s Home paints a stark picture of the current state of rental affordability in Australia. With the majority of renters needing an annual income of $130,000 to comfortably afford the median unit rent of $566 per week, the burden on low and middle-income households is both unsustainable and inequitable. As people on average earn significantly less than this threshold, rental stress has become a widespread crisis that extends beyond the traditionally vulnerable segments of the population.
Addressing this crisis requires urgent and comprehensive policy interventions. Boosting social housing investments and scrapping investor tax handouts such as negative gearing and the capital gains tax discount are crucial steps toward creating a more equitable housing market. These measures, combined with targeted support for both urban and regional communities, could help alleviate the financial strain on Australian renters and foster a more inclusive economy.
In the end, the true cost of Australia’s housing market is not merely measured in dollars—it is measured in the well-being and quality of life of its people. Ensuring that housing is affordable for all is not only an economic imperative but a moral one. As the nation grapples with this escalating challenge, the voices of those affected must be heard, and meaningful action must be taken.
