Cheaper Rents Harder To Find

Cheaper rents are nearly impossible to find, with new data showing rental affordability has hit its lowest levels since 2008.

The only glimmer of home, according to the realestate.com.au Rental Affordability Index, is in Victoria, where rental affordability improved slightly in the past 12 months.

Rea Group senior economist Angus Moore says rent growth, while still solid, has slowed from the peaks experienced in 2022 and 2023 – but affordability will remain very challenging in the year ahead.

The report measures the share of rental properties that a typical household income ($124,000) can afford. It shows that nationally a typical household income can afford just 37% of rental properties.

In New South Wales, that is 25% of rental properties, Western Australia is 24%, Queensland is 29%, and Victoria is  63%.

Both South Australia and Tasmania are the tightest markets where a typical income can afford only 19% of rental properties.

Moore says rents in Perth have nearly doubled since the start of the pandemic and in Adelaide have increased 60%.