The availability of rentals under $400 per week has plummeted across Australia, making it increasingly difficult for renters to find affordable housing.
According to the latest PropTrack data, the proportion of affordable rental listings dropped from 43.1% in March 2020 to just 9.3% in October 2024. This staggering 78% decrease highlights the growing affordability crisis.
Karen Dellow (pictured above), senior audience data analyst at REA Group, said rising rental prices reflect a significant gap between supply and demand, worsened by inflation and the rising cost of living.
Capital cities have been hit hardest by the lack of affordable rentals, PropTrack data showed.
The Australian Capital Territory reported the lowest percentage, with only 2.8% of listings priced under $400 per week. Sydney’s situation is similarly dire, with listings dropping from 22.6% pre-pandemic to just 3.4% today – a decline of 85%.
Greater Perth saw the sharpest reduction, falling from 61.4% to a mere 5.0% over the same period, marking a dramatic 92% drop.
Dellow explained the ongoing trend.
“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,” she said.
Among the capital cities, Hobart offers the best prospects for affordable rentals, with 15% of listings priced under $400 per week – up 3% year-on-year. Brisbane’s Ipswich region comes second, with 11% of rentals meeting the threshold.
Despite these pockets of affordability, competition remains fierce, with only one in 10 rental properties falling under the $400 mark. Darwin also sees similar trends, though options remain limited.
In Melbourne, three areas – Inner East, the Mornington Peninsula, and Inner South – rank among the top regions for affordable rentals.
Meanwhile, Sydney’s Outer West and Blue Mountains region was the only area in Greater Sydney to make the top ten, with just 9% of listings under $400, PropTrack reported.
The rental crisis stems from a combination of limited supply, increasing demand, and rising living costs. Inflation has further exacerbated the situation, pushing median weekly rents to record highs.
According to Dellow, the most effective way to ease pressure on renters is to increase the number of available properties.
“An increase in investors and significant new home development is needed to address this issue,” she said.
As the housing supply remains constrained, renters across Australia continue to face one of the most challenging markets in recent history.
Read the PropTrack insights here.
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