The quest for affordable rentals continues to be a significant hurdle for many Australians, with the availability of rental listings under $400 per week dwindling considerably over the years.
The latest data from PropTrack reveals the grim reality of the rental market nationally and across the capital cities, highlighting a significant decline in affordable rental options when compared with pre-pandemic levels and on a year-to-year basis.
Median weekly rents across all capital cities are considerably higher than at the start of the pandemic, with Perth rents increasing by a staggering 81% over the period.
Nationally, the proportion of rental listings of $400 per week or less has decreased from 43.1% in March 2020, at the start of the pandemic, to just 9.3% in October 2024. This represents a stark 78% reduction compared with pre-pandemic levels and a 27% year-on-year decline.
Such a significant reduction underscores the widening affordability gap, impacting renters' ability to secure reasonably priced housing.
The capital cities have the lowest number of affordable rentals, with the Australian Capital Territory suffering the worst with just 2.8% of current rental listings on realestate.com.au coming in at $400 per week or less.
Greater Sydney reflects one of the most severe contractions, plummeting from 22.6% (compared with pre-pandemic levels) to only 3.4% (October 2024) of listings coming in under the threshold, an 85% reduction compared with the pandemic, and a 30% YoY decline.
Greater Perth experienced a similar trend, with the proportion of affordable listings falling from 61.4% to 5.0% over the same period, marking an even steeper 92% drop. The year-on-year decline stands at 37%.
Of all the capital cities, Hobart is the best bet for finding rental listings going for $400 per week or less with 15% of current rental listings coming in under the threshold; a 3% increase compared to last year.
| 1/3/2020 | 1/10/2023 | 1/10/2024 | compared to pre-pandemic | YoY % change | |
| National | 43.1% | 12.7% | 9.3% | -78% | -27% |
| Australian Capital Territory | 9.5% | 2.6% | 2.8% | -70% | 10% |
| Greater Adelaide | 58.9% | 13.7% | 7.8% | -87% | -43% |
| Greater Brisbane | 49.1% | 9.2% | 7.7% | -84% | -16% |
| Greater Darwin | 46.7% | 9.2% | 10.2% | -78% | 11% |
| Greater Hobart | 32.5% | 14.4% | 14.8% | -54% | 3% |
| Greater Melbourne | 38.6% | 10.2% | 7.4% | -81% | -28% |
| Greater Perth | 61.4% | 8.0% | 5.0% | -92% | -37% |
| Greater Sydney | 22.6% | 4.8% | 3.4% | -85% | -30% |
There are capital regions where affordable rentals are higher than elsewhere; however, they still don't offer a lot of choice for renters.
Hobart has the highest proportion of affordable listings of all the capital city regions, and Ipswich in Brisbane comes in a close second with 11% of total rental listings.
This equates to just one in ten rentals that fall within the threshold, and with demand for properties at an all-time high, the competition is fierce for very few listings.
| 1/3/2020 | 1/10/2023 | 1/10/2024 | compared to pre-pandemic | YoY % change | |
| Hobart | 32% | 14% | 15% | -54% | 3% |
| Ipswich | 78% | 13% | 11% | -86% | -15% |
| Darwin | 47% | 9% | 10% | -78% | 11% |
| Melbourne - Inner East | 26% | 10% | 10% | -61% | -1% |
| Mornington Peninsula | 49% | 11% | 10% | -81% | -10% |
| Adelaide - West | 53% | 14% | 9% | -84% | -39% |
| Sydney - Outer West and Blue Mountains | 50% | 13% | 9% | -83% | -33% |
| Melbourne - Inner South | 26% | 13% | 9% | -67% | -36% |
| Brisbane - West | 33% | 8% | 9% | -74% | 0% |
| Logan - Beaudesert | 73% | 10% | 8% | -89% | -19% |
Darwin is another location where there are still more affordable rentals than in other regions; however, there are also only one in ten rental properties that are within the threshold.
Melbourne has three areas that make it into the top 10 regions with the most affordable rentals, with Melbourne - Inner East, the Mornington Peninsula, and Melbourne - Inner South having more properties that meet the threshold.
Unsurprisingly, considering the median weekly rent in Sydney is $730, there was only one Sydney region that made it into the top ten: Sydney - Outer West and Blue Mountains with 9% of total rental listings below $400.
The decrease in properties to rent as well as increasing demand has pushed up weekly rents to record levels and as a result renting has become more expensive than ever.
In addition, inflation and the rising cost of living has also contributed to the increase in rental prices.
The most effective way to control prices is to increase the number of properties available to rent, which will flatten demand and ultimately moderate price growth; however, an increase in investors as well and significant new home development is needed to address this issue.
