Six-figure salary insufficient for affordable Australian rentals

Australians are facing a severe housing crisis that makes renting a unit increasingly difficult, even for those with high salaries. A recent report reveals that individuals need to earn about $130,000 a year to afford an average rental unit in the country. The report, published by Everybody's Home, highlights how rental stress has expanded beyond low-income earners. Professionals and middle-income families are also struggling due to rising rent prices. Currently, the median income in Australia is roughly $72,592, while the average weekly rent for a unit is $566. This situation is particularly grim in major cities like Sydney and on the Gold Coast, where rentals are especially unaffordable. Even in capital cities such as Perth, Brisbane, and Melbourne, the affordability crisis is worsening. Some areas, like West Queensland and Kangaroo Island, do offer slightly more affordable rents, yet even there, averages can consume a significant portion of lower incomes. Maiy Azize from Everybody's Home points out that individuals earning around $40,000 a year face the alarming reality of rent taking over 119% of their income. This housing crisis is impacting people’s ability to live and work in their communities, leading to delays in life choices and affecting social stability. With a federal election on the horizon, advocacy groups are urging political parties to make housing a priority. They suggest eliminating certain tax incentives for investors and increasing social housing options. The rental vacancy rate has also dropped dramatically to just 1%, illustrating the increasing competition for available rental properties. Minister for Housing Clare O'Neil has acknowledged the crisis and is focused on making renting more affordable. Meanwhile, the opposition has criticized the current government's pace in addressing the housing shortage and has proposed a $5 billion plan to build 500,000 new homes if elected.