Cost of living crisis: rent affordability hits 17 year low in Australia

A new report has revealed the Australian suburbs that have seen the biggest yearly increase in median rents. Find out how much more you’re paying.

Australia has witnessed a dramatic increase in rent over the past twelve months, pushing rental affordability to its lowest point and leaving countless tenants grappling with the toll of the rental crisis.

Soaring rental prices, limited property listing (filled with horror rentals) and a booming population have combined to make this the toughest rental market in decades.

New PropTrack data revealed Sydney is the most expensive city in Australia to rent, with a house costing $1,044 a week on average – 15 per cent higher than 12 months ago. Across the combined capital cities in Australia rent has increased by 17 per cent over the past 12 months.

Meanwhile, the national vacancy rates have dropped to record low of 0.7%, highlighting the gap between limited housing supply and increasing demand.

Affordability for Australia’s lowest income renters is also at a dire level, with a household earning $67,000 annually needing to spend nearly a third of their income on rent. With many tenants struggling to find the extra cash to keep up with the growing cost-of-living, it may be some time before renters experience any relief.

With the cost of rent soaring, public housing being sold off to private developers, and the housing crisis worsening by the day – people are taking to the streets in Sydney ahead of the state budget to demand action to fix the housing crisis. Picture: David Swift

Picture: David Swift

How much does rent cost in Australia?

Here’s a look at how much rent has increased for Victoria, New South Wales, Queensland, South Australia and Tasmania over the last twelve months.

Average rent in Melbourne

Rent in Melbourne has experienced an average increase of $70 a week. Median rent for houses have soared most in the northwest suburb of Aberfeldie (42.86 per cent), followed by Kew East (34.86 per cent).

Suburbs in Victoria with the highest rent increases annually

• Aberfeldie, house, $750, Annual growth 42.8%
• Newborough, unit, $470, Annual growth 42.1%
• Kew East, house, $938, Annual growth 34.8%
• Aberfeldie, unit, $525, Annual growth 31.2%
• McKinnon, house, $950, Annual growth 29.2%

Click here to see the full list of rent increases across Victoria

Average rent in Sydney

Median rent in Sydney has climbed by more than $150 per week in close to 100 city suburbs over the past year. This increase effectively meant tenants paying the new rent needed to channel at least $20 more each day into their housing cost than a year ago – or at least $7800 more a year.

Suburbs in New South Wales with the highest rent increases annually

• North Manly, house, $1,395, Annual growth 51.6%
• Miller Point, unit, $1,100, Annual growth 41%
• Haymarket, unit, $1,095, Annual growth 36.8%
• Tamarama, unit, $1,300, Annual growth 36.8%
• Bellevue Hill, house, $2,700, Annual growth 35%

Click here to see the full list of rent increases across New South Wales

A 100m long line of people looking for rental housing in Newtown, Sydney. Picture – Chris Pavlich

Average rent in Brisbane

The median unit rent in Brisbane jumped almost 17 per cent compared to the start of last year to $560. The median Brisbane house rent is not that far ahead at $620 a week.

Across the rest of the state rent jumped by as much as 35 per cent, while just 26 suburbs out of the 860 analysed by PropTrack have become cheaper to lease.

Suburbs in Queensland with the highest rent increases

• Rosewood, unit, $380, annual growth 35.7%
• Miles, $420, house, annual growth 31.2%
• Spring Hill, $840, house, annual growth 29.2%
• Fairfield, $550, unit, annual growth 27.9%
• Beaudesert, $420, unit, annual growth 27.2%

Click here to see the full list of rent increases across Queensland

Average rent in Adelaide

More than 90 suburbs in Adelaide recorded double-digit growth in their weekly house rent over the past year. PropTrack data shows the median weekly rent for houses rose between 10 and 30 per cent in 93 suburbs. Semaphore topped the list, with 28.02 per cent growth taking its median to $663 per week as of January.

Suburbs in South Australia with the highest rent increases

• Campbelltown, unit, $500, annual growth 29.8%
• Grange, $450, unit, annual growth 28.5%
• Murray Bridge, house, $420, annual growth 28.2%
• Semaphore, $663, house, annual growth, 28%
• Sellicks Beach, $528, house, annual growth 23.3%

Click here to see the full list of rent increases across South Australia

Average rent in Hobart

PropTrack’s report showed that between the March quarter of 2020 and December 2023, Hobart’s median advertised rent increased by $50 per week. In regional Tasmania, the increase was $100.

Suburbs in Tasmania with the highest rent increases

• Devonport, Unit, $350, annual growth 12.9%
• Mowbray, Unit, $400, annual growth 11.8%
• Mount Stuart, Unit $420, annual growth 10.5%
• Trevallyn, Unit $380, annual growth 8.5%
• Devonport, House $410, annual growth 7.8%

Click here to see the full list of rent increases across Tasmania

How to get approved for a rental

Recent growth in rent values have averaged a 9.1 per cent a year for the past three years in Australia, showing that renting in Australia has never been more expensive. Experts believe the squeeze will continue throughout 2024, noting that rising property prices are making it even more difficult for tenants to become homeowners. With scores of tenants competing for the same rental listings, find out how to stand out from the crowd with our applying for a rental guide.

Originally published as Cost of living crisis: rent affordability hits 17 year low in Australia