Australians need six-figure salary to afford an average rental, Priced Out report finds

Australians now require an annual income of $130,000 just to afford an average rental property.

Campaign group Everybody’s Home released its 2025 Priced Out report on Tuesday, revealing even those on six figure salaries are forking out more than 30 per cent of their income on housing costs, tipping them into rental stress.

“This report exposes the stark reality facing Australian renters everyday,” Everybody’s Home spokesperson Maiy Azize said.

“Rental stress is no longer confined to those on lower incomes — it’s affecting professionals, essential workers, and middle-income families who simply can’t keep up with soaring rents.

“A $100,000 salary used to be considered a secure income, but our research shows people on this wage are struggling in both cities and regional areas because rents are so staggeringly high.”

People spending more than 30 per cent of their household budget are considered to be in financial stress.

The Priced Out report shows many renters earning below $100,000 per year are battling “to afford asking rents, with housing costs far exceeding” the affordability benchmark.

This level of financial strain “leaves little room” for other essentials including food, healthcare and transport, and leaves a “stable home out of their reach”.

The issue is severe right across the country, but Northern WA — where those earning $40,000 will need an unsustainable 119 per cent of their income to put a roof over their head — is considered the “least affordable” region in Australia.

“With an election coming up, the next government needs to urgently boost social housing. These are low-cost rentals for people in the most severe housing stress — people who are being smashed by the private rental market,” Azize said.

“The Federal Government must treat housing as its top priority. Without action more Australians will continue to be priced out of living in safe, decent, affordable homes.”

Mother-of-three Rachael Jackson said she faces an uncertain future, with the lease on the Sydney rental she shares with her three children set to lapse in April.

The Priced Out report shows the NSW capital is facing “extreme unaffordability”.

“It’s a horrible, sickening feeling — you can never rest,” Jackson told 7NEWS.com.au.

“Am I going to get a call saying I have to leave? I’m always in survival mode.”

Jackson’s priority is to provide stability for her two daughters who are studying at university and her 16-year-old son, who lives with autism and an intellectual delay.

She said the last year had been “hell” as she battled her own serious health concerns that landed her in hospital, and cost of living pressures “which nearly killed us”.

“People talk about cutting out coffees, but sometimes a coffee is a mental health break. And $3 or $4 once a day isn’t going to make a big difference,” she said.

“You get creative. Sometimes two takeaway meals split between me and the kids is cheaper than buying all the ingredients from one of the major supermarkets.

“A lot can make shortcuts but people will often go without. It shouldn’t be that way.”

She said she had written to state and federal leaders, hoping to sit down with them to discuss the reality faced by struggling families.

Housing affordability ‘time bomb’

The federal Labor government led by Anthony Albanese has set the “ambitious” national target of building 1.2 million “new, well-located homes” by the middle of 2029.

On Tuesday, the Property Council of Australia projected the government would come up short by 462,000 homes and “set off a housing affordability time bomb”.

“Boosting housing supply is the only long-term, sustainable way in which we can boost affordability of homes to buy and to rent,” Property Council chief executive Mike Zorbas said.

NSW is 185,000 homes short and Queensland needs an additional 96,000.

Victoria requires 71,000, WA is down 56,000 and SA needs 32,000.

The Australian Capital Territory is the only jurisdiction currently projected to reach its target.

Modelling for the council by Mandala Partners found that hitting the 1.2 million housing supply target could mean significant annual savings of up to $4680 for renters, given demand will be eased.

“2025 is the year for Australia to redouble our housing supply efforts with the urgency and commitment this crisis demands,” Zorbas said.

Building the 462,000 additional homes is projected to contribute $128 billion in economic activity and support 368,000 jobs, the report found.

The federal government has attempted to boost housing supply with its $3 billion New Home Bonus program.

The program provides funding to states and territories that exceed their share of the housing supply target and incentivises the introduction of reforms that boost new builds and affordability.

Ahead of next week’s federal budget, the council has recommended increasing the New Homes Bonus scheme to $6 billion and allocating any unspent money to future housing supply initiatives.

“That increase would be just 0.1 per cent of the Australian Government’s 2024/25 Budget,” Zorbas said.

“We also need to improve the scheme’s transparency through public reporting and highlighting best practice to ensure accountability.

“The Property Council has called for incentives for two decades because they are vital to boosting housing supply. Our proposal will make sure this worthy scheme delivers on its promise.

“Three in ten dollars a buyer spends on a new home is governments’ taxes. Any Federal boost would need to be matched by changes to gouging state and territory tax regimes and planning systems to support the delivery of new homes.”