Australian Rent Growth Slows but Affordability Crisis Persists

Median-income households now spend a record 33% of pre-tax income on rent as rental pressures remain widespread despite decelerating price increases.

National rent prices grew 4.8% in 2024, the slowest annual increase since 2021, but rents remain historically high after years of sharp rises.
Median-income households are spending 33% of their pre-tax income on rent, the highest level recorded since tracking began in 2006, leading to widespread rental stress.
Regional areas saw faster rental growth than capital cities in 2024, with rents in regional Australia rising 6.2% compared to 4.3% in urban centers.
A shift toward larger shared households and increased investor participation helped ease rental price growth, though affordability challenges persist for many renters.
Housing advocates are calling for rent caps and increased social housing investment, with a proposed target of 25,000 new homes annually to address the national housing shortfall.