Households now need six-figure income to comfortably rent in any capital city

15 minutes agoWed 10 Dec 2025 at 7:38pm

Households need to earn more than $112,000 to rent in a capital city without entering ‘rental stress’ according to new data analysis. (ABC News: Jack Fisher)

In short:

Households need to earn an annual income of at least $112,667 to rent a median-price capital-city home without entering rental stress.

It represents a 51 per cent increase since 2019, according to new analysis from Domain.

What’s next?

Domain senior economist Joel Bowman says rental increases are slowing, but some cities could see further rises in 2026.

Renters need to be earning a six-figure income to be able to comfortably rent a house in any of Australia’s capital cities, according to new analysis by Domain.

It represents a more than 50 per cent increase since 2019, with households now needing to bring in at least $112,667 to rent a median-priced capital-city house without entering rental stress.

Households spending more than 30 per cent of their pre-tax income on rent are in ‘rental stress’, according to the Australian Bureau of Statistics (ABS).

Sydney tops the list with renters needing a household income of at least $135,200 to rent a typical house without spending more than 30 per cent of their income.

Suburbs 30-40 kilometres from a CBD are considered to be the most affordable. (ABC News: Keana Naughton)

In Canberra, Perth and Darwin, more than $120,000 of household income would be required, while Hobart and Melbourne round out the list at just over $100,000.

Units are not far behind, with an income of $130,000 required to comfortably rent in Sydney. Hobart had the lowest required income for units at $84,000.

With the median annual salary sitting around $88,000, according to the ABS, Domain senior economist Joel Bowman said the new figures highlight the "potential struggles" for single-income households.

Dr Bowman said the outer suburbs of major cities continue to offer some "breathing room".

"As you move further afield, there’s a notable drop in the required income that people need in order to avoid that housing stress scenario," he said.

Dr Bowman said the pace of rental increases is starting to slow, but some cities like Brisbane could see rent rises of between 4 and 5 per cent next year.

‘At a loss’

Troy Sindorff, 40, relies on a disability support pension and lives with his partner, who is his full-time carer in the Logan suburb of Holmview, 35 kilometres south of Brisbane.

Dr Joel Bowman from Domain said Brisbane, Adelaide and Perth have seen the worst deterioration in rental affordability. (Supplied)

The couple live with their two young children and have seen their rent jump from $410 a week to $560 over the past three years.

Mr Sindorff said he has been told to expect another rise to $650 in April next year.

Despite living in what Domain categorises as a ‘sweet spot’ for affordability, Mr Sindorff said they will not be able to make ends meet at that price.

"It’d be impossible for us to stay here. It’s hard, I don’t know what to do. We’re at a loss," he said.

The required income to rent a median-priced capital city home has jumped by 51 per cent since 2019. (ABC News: Darryl Torpy)

Mr Sindorff said they have been considering a range of options, including spending their savings on a motorhome or moving interstate.

"When the kids are asleep, we’re up for four or five hours just researching everything. My kids are my life," he said.

"I just want a stable, safe, secure home for them."

Renters facing difficult choices

Maiy Azize is the national spokesperson for the Everybody’s Home campaign, a coalition of housing, homelessness and welfare organisations.

She said she was "not surprised" by the 2026 forecast.

"This might be shocking to some people, but I suspect it’s not very surprising to a lot of people who are really at the forefront of the housing crisis and living it every day."

Maiy Azize from the Everybody’s Home campaign said renters are being forced to make "dire" choices. (Supplied)

Ms Azize said households that are "really squeezed" are being forced to make some tough choices.

"They’re having to choose between food and rent, between medical appointments and rent, between driving their car and rent."

She said 2026 was looking "really, really bleak" for many renters.

"We are becoming a country where only the very wealthy can avoid housing stress and that is a massive concern,"

she said.

"I think that is a pretty dark and dire place to be."

Ms Azize said older people were having to make "dire choices", with some entering the aged care system early because they can not afford to live in the private rental market.

That is not an option for 75-year-old retiree Dennis O’Loughlin and his wife.

The couple moved to Brisbane from New Zealand in 2009 to support their daughter and have since become Australian citizens.

But a series of health crises saw their savings dwindle, and the couple now estimate they are spending around 80 per cent of their income covering their $640 weekly rent in Brisbane’s outer southern suburbs.

That will increase to $690 next month.

They now rely on his wife’s wages, but she was recently told her hours are going to be reduced.

"It’s very worrying how we’re going to make ends meet," Mr O’Loughlin said.

"We are not ones for high living; we do all our cooking ourselves. But I can see that lifestyle diminishing."

Middle and outer suburbs of capital cities are still viable options for renters willing to compromise on distance, Dr Bowman said. (ABC News: Glenn Mullane)

Mr O’Loughlin said he expects they will have to visit charity groups to get by.

"I’ve never had to do it and I’ve never been out of work all my life. It’s a bit of a shock, really," he said.

Ms Azize said she expects the rental crisis to reach a "tipping point" every year, but is always surprised by "how resilient people are."

"Sacrifice and ingenuity are really the only things keeping a lot of people afloat at the moment. It’s just a matter of how long that will last."