REA Group senior economist Angus Moore says Australian rental affordability has fallen to a record low.
Australian rental affordability has plummeted to its worst level since records began, with low-income renters now priced out of the market.
REA Group today released the latest realestate.com.au Rental Affordability Report, which provides a measure of the share of rental properties that Australian households can afford to rent.
The report revealed affordability declined over the past 12 months to reach its lowest level since 2008.
Australian rental affordability has plummeted to its worst level since records began. Picture: NewsWire / John Appleyard
10/84 Finnegan Circuit, Oxley in Queensland is up for rent at $745 per week.
Australian households earning the median income of $124,000 could afford just 37 per cent of rentals advertised between July to December 2025, a new low.
For lower-income households earning just under $75,000 per year, only two per cent of rentals
advertised over July to December 2025 would have been affordable.
“Rental affordability has fallen to a record low, with Australian renters facing the toughest conditions since at least 2008,” said REA Group senior economist and report author, Angus Moore.
“A median income household in Australia could afford to rent just 37 per cent of the advertised rentals on realestate.com.au between July and December 2025.
“This is a significant decline from the conditions recorded at the end of the 2010s into the early 2020s.”
The report revealed national rent prices surged from $420 at the start of 2020 to $650 today.
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The report revealed national rent prices surged from $420 at the start of 2020 to $650 today.
Mr Moore said since the onset of the pandemic, national rent prices had grown 55 per cent, while income growth failed to keep pace, lifting just 25 per cent over the same period.
“This imbalance has worsened rental affordability,” Mr Moore said.
“On top of that, rent prices have grown faster for more affordable properties, making it particularly challenging for low-income renters, who can afford essentially no rentals at just two per cent.”
81a Blackbutts Road, Frenchs Forest in New South Wales is on the rental market at $1000 per week.
Despite the challenges, he said there were signs conditions were improving for renters.
“Rental availability improved over 2025 in most capitals, and rent growth, while still solid, has slowed from the peaks seen in 2022 and 2023,” he said.
“However, rental affordability will remain at incredibly low levels in the year ahead.”
New South Wales remains the least affordable state for renters, followed by South Australia, where typical income households could afford just 25 per cent and 19 per cent of rentals, respectively.
13 Foote Way, Clyde in Victoria is up or rent at $560 per week.
Victoria was the only state to see rental affordability improve over the past 12 months, holding its place as the most affordable state for renters by a wide margin.
For median-income households in Western Australia and Queensland, just 24 per cent and 29 per cent of rentals advertised between July to December 2025 were affordable.
Australian households at the 70th income percentile, earning about $190,000 per year, could afford 86 per cent of advertised rentals in 2025-26.
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