Australians’ affordability is falling sharply as rental rates outpace wages
REA Group chief economist Angus Moore says Australian employability has fallen sharply.
Australia’s affordability has fallen to its worst level since records began, with low-income tenants now being priced out of the market.
REA Group today released the latest realestate.com.au Rental Affordability report, which provides an estimate of the share of rental properties that Australian households can afford to rent.
The report revealed that affordability has fallen over the past 12 months to its lowest level since 2008.
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Hiring affordability in Australia has fallen to its worst level since records began. Photo: NewsWire / John Appleyard
10/84 Finnegan Circuit, Oxley Queensland to rent $745 per week.
Australian households earning a median income of $124,000 could afford just 37 per cent of advertised rent between July and December 2025, a new low.
For low-income households earning just under $75,000 a year, only 2 percent rent
advertised from July to December 2025 could be purchased.
“Employment affordability has fallen sharply, with Australian employers facing the toughest conditions since at least 2008,” said REA Group senior economist and report author, Angus Moore.
“A middle income household in Australia can only rent 37 per cent of the rental properties advertised on realestate.com.au between July and December 2025.
“This is a significant decline from conditions recorded in the late 2010s to the early 2020s.”
The report indicated that the national rental prices increased from $420 in early 2020 to $650 today.
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The report indicated that the national rental prices increased from $420 in early 2020 to $650 today.
Mr Moore said that since the start of the pandemic, national tax rates have increased by 55 per cent, while income growth has failed to keep up, increasing by just 25 per cent in the same period.
“This inequality has worsened the level of recruitment,” said Mr Moore.
“Furthermore, rents have increased rapidly in affordable areas, making it even more difficult for low-income tenants, who can only afford to pay a 2 percent rent increase.”
81a Blackbutts Road, Frenchs Forest New South Wales is on the rental market for $1000 per week.
Although there are problems, he said there are signs that show that the situation is improving for employers.
“Rental availability improved in 2025 for most companies, and rental growth, while still strong, has slowed from the peaks seen in 2022 and 2023,” he said.
“However, the ability to hire will remain at a very low level next year.”
New South Wales remains the most affordable state for renters, followed by South Australia, where average income households can afford just 25 per cent and 19 per cent of rent, respectively.
13 Foote Way, Clyde in Victoria high or rent for $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 area for renters at a wide range of rates.
For middle-income households in Western Australia and Queensland, only 24 per cent and 29 per cent of rental properties advertised between July to December 2025 were affordable.
Australian households in the 70th percentile of income, earning about $190,000 a year, can afford 86 percent of advertised employment by 2025-26.
