Housing · Reported August 2026

Australians now spend a record 33 per cent of pre-tax income on rent

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Probably worth doing something about

If you rent in Australia, this is directly about you. Record rental stress is a material condition, not a trend piece.

In a nutshell: Cotality analysis shows Australian households now dedicate a record 33.4 per cent of pre-tax income to rent. National rents have risen 42.9 per cent over five years, adding roughly $204 per week to the average bill. Rental inflation as measured by ABS CPI was 3.9 per cent annually in early 2026, down from a peak of 7.8 per cent in 2023, but still above the long-term average of 3 per cent. Vacancy rates remain tight and national rental listings are about 11 per cent lower than a year ago.

Spin Unspin

What they’re saying

An unusual divergence: falling property values are not easing rental markets because supply of rental listings remains well below historical norms.

The cumulative pressure dwarfs any single year’s wage growth; the affordability problem has compounded over many policy cycles, not just the recent rate-hike period.

The 33.4% figure is from Cotality cited by Global Property Guide February 2026. Vacancy and listing figures from the same source. The ABS rental CPI figure is from official ABS data. Independent corroboration is reasonable though not fully duplicated from two primary sources.

Australia’s Residential Property Market Analysis 2026

Australian Property Market - Prices, Trends, Forecast [August 2026]

Do I care?

State rental assistance and bond loan schemes exist in all states. Services Australia’s Rent Assistance is available for eligible income support recipients.

If your rent is consuming more than 30 per cent of your income, you qualify for most state rental assistance schemes — worth checking.

Was this relevant?

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