Shock figures reveal how much average Aussie needs to make to pay rent in sought-after suburbs

The amount average Aussies need to earn each week just to pay rent in some of the country’s most sought-after suburbs has been revealed.

Alarming figures have revealed how much the average Aussie would need to make to rent in some of the country’s most sought-after suburbs, highlighting a widening gap between wages and average rental prices.

MGC Quantity Surveyors’ new report on the rental disparity in the top 10 suburbs across Australia’s capital cities has led to calls for action to address the “significant gap” renters face in light of skyrocketing rates.

Some of the most expensive areas require a household salary of more than $3000 a week - suburbs of Byron Bay in NSW and Mermaid Waters and Noosaville in Queensland requiring around 60 per cent of the average household income to be dedicated to weekly rent just to live comfortably.

Mike Mortlock, Managing Director of MCG Quantity Surveyors, said the figures reveals the “harsh reality” faced by many Australians.

A new report has shed light on the grim disparity between wages and rental prices, with residents in some suburbs across the country requiring around 60 per cent of their weekly income to be dedicated to rent just to live comfortably. Picture: NCA NewsWire / Jeremy Piper

The top 10 suburb areas across the nation with the highest income gaps, along with their required weekly incomes to rent and the percentage of income. Picture: Supplied

“(It is) a reality where the dream of living in a prime location is increasingly out of reach due to the widening gap between wages and rental prices,” he said.

“When a significant portion of a household’s income is dedicated to rent, there’s less available for other expenditures. This isn’t just a problem for renters; it’s a challenge for the entire local economy.”

In the report - titled Unaffordable Australia: The Surprising Income You Need to Rent Comfortably - researchers used the area’s median rents, then calculated what income was needed to match 30 per cent of household income allocated to rent, which is considered the benchmark for affordability.

This figure was then compared to the average national household income to find the salary gap.

The suburbs of Byron Bay, Suffolk Park and Broken Head topped the national list, with over 60 per cent of household income, or about $3805 per week week, being needed for rent.

It was followed by the Queensland suburbs of Mermaid Waters (59 per cent of income, $3717 per week), Noosaville (62 per cent of income, $3099 per week), Runaway Bay (62 per cent of income, $3027 per week) and Benowa (50 per cent of income, $3458 per week).

Mike Mortlock, Managing Director of MCG Quantity Surveyors, said the report should prompt urgent policy action to bridge the affordability gap. Picture: NCA NewsWire / David Crosling

Renters in Melbourne CBD - North were among the worst off, with the report finding an average of $1933 per week, or 56 per cent of household income, was required to live comfortably.

Those figures represent an income gap of -$747.41, the report states.

In South Australia, Victor Harbour topped the list with a required average weekly income of $1564 per week - representing about 44 per cent of household income.

The median rents were determined using a rolling 12-month sample periods, using data as of the 2021 Census.

“Key findings demonstrate that in places like Byron Bay, Mermaid Waters and Noosaville, residents would need to substantially increase their income to afford rent at a rate that does not exceed 30 per cent of their income,” the report states.

Mr Mortlock said the report’s findings needed to be considered as a call to action by policymakers and industry stakeholders.

“We need innovative solutions to bridge this affordability gap. It’s imperative for the sustainability of our communities and the overall health of our economy,” he said.

Originally published as Shock figures reveal how much average Aussie needs to make to pay rent in sought-after suburbs