Renters need to be earning a six-figure income to be able to comfortably rent a house in any of Australia’s capital cities, according to new analysis by Domain.<\/p>\n
It represents a more than 50 per cent increase since 2019, with households now needing to bring in at least $112,667 to rent a median-priced capital-city house without entering rental stress.<\/p>\n
Households spending more than 30 per cent of their pre-tax income on rent are in ‘rental stress’, according to the Australian Bureau of Statistics (ABS).<\/p>\n
Sydney tops the list with renters needing a household income of at least $135,200 to rent a typical house without spending more than 30 per cent of their income.<\/p>\n
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Suburbs 30-40 kilometres from a CBD are considered to be the most affordable.\u00a0 (ABC News: Keana Naughton)<\/p>\n
In Canberra, Perth and Darwin, more than $120,000 of household income would be required, while Hobart and Melbourne round out the list at just over $100,000.<\/p>\n
Units are not far behind, with an income of $130,000 required to comfortably rent in Sydney. Hobart had the lowest required income for units at $84,000.<\/p>\n
With the median annual salary sitting around $88,000, according to the ABS, Domain senior economist Joel Bowman said the new figures highlighted the “potential struggles” for single-income households.<\/p>\n
Dr Bowman said the outer suburbs of major cities continued to offer some “breathing room”.<\/p>\n
“As you move further afield, there’s a notable drop in the required income that people need in order to avoid that housing stress scenario,” he said.<\/p>\n
Dr Bowman said the pace of rental increases was starting to slow, but some cities like Brisbane could see rent rises of between 4 and 5 per cent next year.<\/p>\n
‘At a loss’<\/p>\n
Troy Sindorff, 40, relies on a disability support pension and lives with his partner, who is his full-time carer in the Logan suburb of Holmview, 35 kilometres south of Brisbane.<\/p>\n
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Dr Joel Bowman from Domain said Brisbane, Adelaide and Perth have seen the worst deterioration in rental affordability. (Supplied)<\/p>\n
The couple live with their two young children and have seen their rent jump from $410 a week to $560 over the past three years.<\/p>\n
Mr Sindorff said he had been told to expect another rise to $650 in April next year.<\/p>\n
Despite living in what Domain categorises as a ‘sweet spot’ for affordability, Mr Sindorff said they would not be able to make ends meet at that price.<\/p>\n
“It’d be impossible for us to stay here. It’s hard, I don’t know what to do. We’re at a loss,” he said.<\/p>\n
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The required income to rent a median-priced capital city home has jumped by 51 per cent since 2019. (ABC News: Darryl Torpy)<\/p>\n
Mr Sindorff said they had been considering a range of options, including spending their savings on a motorhome or moving interstate.<\/p>\n
“When the kids are asleep, we’re up for four or five hours just researching everything. My kids are my life,” he said.<\/p>\n
“I just want a stable, safe, secure home for them.”Renters facing difficult choices<\/p>\n
Maiy Aziz, the national spokesperson for the Everybody’s Home campaign, a coalition of housing, homelessness and welfare organisations, said she was “not surprised” by the 2026 forecast.<\/p>\n
“This might be shocking to some people, but I suspect it’s not very surprising to a lot of people who are really at the forefront of the housing crisis and living it every day.”<\/p>\n
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Maiy Azize from the Everybody’s Home campaign said renters are being forced to make “dire” choices. (Supplied)<\/p>\n
Ms Azize said households that are “really squeezed” were being forced to make some tough choices.<\/p>\n
“They’re having to choose between food and rent, between medical appointments and rent, between driving their car and rent.”<\/p>\n
She said 2026 was looking “really, really bleak” for many renters.<\/p>\n
“We are becoming a country where only the very wealthy can avoid housing stress, and that is a massive concern,” she said.<\/p>\n
“I think that is a pretty dark and dire place to be.”<\/p>\n
Ms Azize said older people were having to make “dire choices”, with some entering the aged care system early because they could not afford to live in the private rental market.<\/p>\n
That is not an option for 75-year-old retiree Dennis O’Loughlin and his wife.<\/p>\n
The couple moved to Brisbane from New Zealand in 2009 to support their daughter and have since become Australian citizens.<\/p>\n