The 11th annual index compares rents and incomes across Australia to show where households face the greatest stress. It finds that rental affordability has finally stabilised in parts of the country after years of steep decline. However, pressures remain high, especially for people on low and moderate incomes.

Poor rental affordability in cities and regions is no longer viewed solely as a housing issue. It is now widely recognised as an economic issue, with key workers across Australia priced out of living close to their jobs and the community services they keep running being put under strain.

Key findings

• Results show an improvement in the ACT (up 4%) along with stabilisation in Sydney, Melbourne and Adelaide.
• Regional areas (excluding South Australia) have become less affordable, many reaching the lowest point recorded by the index.
• Perth remains the least affordable capital for renters, and regional Western Australia has suffered the sharpest annual decline of any region in the country.
• In the least affordable parts of the country, including Perth, Sydney, regional Queensland and regional New South Wales, even average earners are pushed into rental stress, spending more than 30% of their income on rental.
• Stabilisation in some cities reflects both easing supply constraints and the growing inability of renters to absorb further increases.