Median rental unaffordable for Australians on $130,000

Australians require to earn around 75% more than the median income to afford the median rental, according to the latest report by Everybody's Home. Even someone earning $130,000 annually, which is $55,000 more than the national average, would still experience housing stress in a median rental property. This worker would need to allocate 33% of their disposable income towards the national median rental of $614 per week, surpassing the internationally-accepted affordability threshold of 30% of a household budget.

Maiy Azize, a spokesperson for Everybody's Home, noted that the rental crisis is a protracted trend rather than a sudden policy issue, and there's a limit to how much renters can afford before hitting a breaking point. She highlighted that essential workers, professionals, and even those with six-figure salaries are grappling with rent payments nationwide.

The group's latest "Priced Out" report, unveiled on Monday, revealed that a $70,000 earner, nearly Australia's median employee income of $74,100, would need to spend more than half of their income on the median rental in each capital city. In certain regions of regional Australia, the affordability was even more dire. Northern Western Australia emerged as the most unaffordable location, with a $70,000 earner dedicating 87% of their income to the median rental.

The Gold Coast, Sunshine Coast, Central Coast, Wollongong, and Beenleigh in Queensland also ranked among the top 10 unaffordable areas.

Azize attributed the rental crisis to governments withdrawing support for public housing. She emphasized that the solution is straightforward: the federal government must construct public and community homes at scale. In the meantime, the federal government needs to collaborate with states and territories to curb rent hikes, enhance rental standards, and ensure low-income earners can afford housing.

The Australian Council of Trade Unions has also called on the government to intensify housing investment, advocating for one in ten new homes to be public housing, up from the existing rate of one in 50.