Even those earning six-figure salaries are facing housing costs exceeding 30% of their income in capital cities and numerous regional areas, according to a recent report by campaign group Everybody’s Home, as cited by the ABC.
The report analyzed rental affordability for individuals earning between AUD40,000 and AUD130,000 per year.
Experts often cite the 30% threshold as a key indicator of housing affordability, particularly for low-income households.
Those who make less than AUD130,000 might face financial difficulty with rent.
For someone earning AUD70,000 annually, rent would consume more than half their income based on the average unit price.
Lower earners, such as those making AUD40,000, could be forced to allocate over 70% of their income to rent.
Maiy Azize, spokesperson for Everybody’s Home, said that the research highlights how even high-income individuals are struggling with “staggeringly high” rents.
“The situation is even more dire for those on lower incomes, with people earning AUD40,000 per year facing extreme rental stress nationwide,” she added.
The report identified capital cities and their surrounding regions as the most unaffordable areas. Sydney and the Gold Coast stood out as particularly challenging.
In Sydney, rent for a person earning AUD40,000 would amount to 102% of their income.
“This figure indicates that rent alone exceeds their entire income, making it completely unaffordable without additional sources of financial support,” the report noted.
Karen Walsh, CEO of National Shelter – a body focused on improving housing for low-income earners – told the ABC that many Australians are being left in a hopeless situation.
“Low income households continue to be squeezed out of the private rental market, and with inadequate availability of social and affordable housing, they’re at greater risk of homelessness,” she said.
Everybody’s Home is demanding urgent action as the federal election approaches, asserting that housing must be a top priority.
The report pointed out that investment in social housing has declined over the past four decades, failing to keep pace with population growth, while affordability has deteriorated significantly.
Housing and Homelessness Minister Clare O’Neil acknowledged housing as a critical government issue.
“I want people to know that I really do understand the pressure that this housing crisis is putting on people, whether they need social housing, are renting, or looking to buy a home – and I’m dedicating every day to turn this housing crisis around,” she said.
