How much do Australians spend on rent?
What do Australians spend on rent?
According to the latest Domain Rental Report, combined capital house rents have remained the same for three consecutive quarters. Melbourne, Sydney, Perth, Brisbane, and Adelaide have all recorded their slowest March quarter in recent years. Even so, almost all capital cities have increased house rent prices, though quite minimally.
Combined capital unit rents, on the other hand, have increased 3.2% since the last quarter (December 2024). Unit rents across the country, save for Adelaide and Perth, have increased since the last quarter. Although Adelaide and Perth did not see an increase in rent prices since December 2024, they have the highest year-on-year increase with 7.5% and 9.1% respectively.
The combined median house and unit rents are the same at $650 for the March 2024 quarter. As rent prices for units increase, so do the affordability pressures. More renters are now tasked to look for less expensive options in line with their finances.
How much of weekly wages are spent on rent?
Ideally, you should spend less than 30% of your income on rent. However, for many Australians, that’s simply not possible. As you can see below, rent prices compared against are averaging 32.89% weekly. If you’re renting, it may be difficult to find something suitable for your budget.
Average house rental cost by city
| City | Median House Rent | Average Weekly Salary (by state and territory) | Rent as % of weekly salary |
|---|---|---|---|
| Sydney (NSW) | $775 | $1,985.60 | 39.03% |
| Melbourne (Vic) | $580 | $1,927.90 | 30.08% |
| Brisbane (Qld) | $650 | $1,953.70 | 33.27% |
| Adelaide (SA) | $620 | $1,857.40 | 33.37% |
| Perth (WA) | $690 | $2,156.80 | 31.99% |
| Canberra (ACT) | $700 | $2,178.40 | 32.13% |
| Darwin (NT) | $700 | $1,886.60 | 37.10% |
| Hobart (Tas) | $570 | $1,765.60 | 32.28% |
| Combined | $650 | $1,975.80 | 32.89% |
Sources: Domain Rental Report March 2025 & Australian Bureau of Statistics Average Weekly Earnings November 2024
Average unit rental cost by city
| City | Median Unit Rent | Average Weekly Salary (by state and territory) | Rent as % of weekly salary |
|---|---|---|---|
| Sydney (NSW) | $725 | $1,985.60 | 36.51% |
| Melbourne (Vic) | $575 | $1,927.90 | 29.82% |
| Brisbane (Qld) | $615 | $1,953.70 | 31.47% |
| Adelaide (SA) | $500 | $1,857.40 | 26.91% |
| Perth (WA) | $600 | $2,156.80 | 27.81% |
| Canberra (ACT) | $575 | $2,178.40 | 26.39% |
| Darwin (NT) | $560 | $1,886.60 | 29.68% |
| Hobart (Tas) | $480 | $1,765.60 | 37.18% |
| Combined | $650 | $1,975.80 | 32.89% |
Sources: Domain Rental Report March 2025 & Australian Bureau of Statistics Average Weekly Earnings November 2024
If you’re paying too much in rent, consider employing the following tactics:
- Get a housemate or two: It’s a no-brainer that two or more people splitting the rent will be cheaper than paying for it yourself. If you’ve got a spare room or recently found yourself one roommate short, get someone in to help take the burden of paying rent off your back.
- Downsize: Smaller places usually charge less rent than an inner-city apartment or a big house. Also, apartments, in general, are cheaper than houses in terms of rent, so consider downsizing as a more practical option.
- Commit to a longer lease: Finding new tenants is a pain for landlords and is often costly. You could try committing to a longer-term lease in exchange for a slightly lower rent if you’re confident you like the place and don’t foresee any issues arising.
- Research similar properties: If similar properties in your area have dropped their rents lately, or your rental property has fallen in quality, you can ask your landlord for a decrease in rent. They might not oblige you with your request, but it’s worth a try, and it might work if they think they’re going to lose a trusted tenant. Just don’t ask for too big of a discount.
- Rent in the middle of the year: Rentals are usually more in demand from December to January, as leases end and people scramble to find new places while landlords raise their prices accordingly. Holding off until the slower mid-year periods could help you find a better price at a quieter time in the market.
Rent vs Loan: Is buying a home better than renting?
If you want the flexibility that comes with renting, the rent prices may not impact your decision much. However, for those who want a long-term investment and to take advantage of rising property values, purchasing your own home may be the right choice.
Ultimately, the decision to rent or buy all depends on your specific financial situation and what you want out of your living arrangements.
In terms of price, rent payments and loan repayments could come out the same, depending on where you live and what kind of property you buy. Renting a unit in Darwin, for example, would cost you approximately $2,240 a month. But if you took out a home loan of $373,213, the average unit price in Darwin, with a 5.79% interest rate (principal and interest over 30 years), your repayments will be an estimated $2,187 a month. That’s saving you $53 every month or $636 annually, plus you’ll enjoy all the perks of homeownership when you take out a home loan.
If you want to do some number crunching on your own, use this handy online rent versus buy calculator!
Of course, there are other costs associated with buying and ongoing ownership of a home a home, such as stamp duty and rates, not to mention the difficulties many people face saving up for a deposit, owning your own home can be much more beneficial, as those mortgage repayments are going towards paying off an asset that will become yours.
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