Australian renters now spend a record third of income on rent, no relief near

Directly affects the roughly one-third of Australians who rent. Vacancy rates below 1.5% in every capital, median rent at record highs, and real wages falling mean the structural squeeze is not easing.

In a nutshell: Income needed to rent comfortably across capital cities has jumped 51% since 2019, according to Domain’s Renting in 2026 report, while wages have not kept pace. Rental households now dedicate an average of 33.4% of pre-tax income to rent — a record high. The national median rent has climbed to $705 a week. Vacancy rates are below 1.5% in every capital. Cotality and OECD data show Australian real wages have fallen 5.1% since March 2021, one of the steepest falls among developed economies.