The 2024 Rental Affordability Index reveals Australia's rental crisis is only getting worse, driving more households into financial hardship.

Marking its tenth annual release, the Rental Affordability Index, released by SGS Economics and Planning and National Shelter, shows rental affordability has hit record lows in nearly every major capital city and region, with low-income renters bearing the brunt of soaring rents. For the first time, Perth has overtaken Sydney as the least affordable city to rent.

With affordability plummeting nationwide, individuals and families are being pushed further into a cost-of-living crisis. In all major cities and regional areas, rental markets are now classified as “critically unaffordable” for those relying on JobSeeker, part-time parenting payments, or pensions. Affordable housing options have become nearly impossible to find for single hospitality workers, with regional South Australia remaining the only affordable area.

Over the past year, major capital cities—Sydney, Melbourne, Brisbane, Perth, and Adelaide—have recorded their worst affordability scores since the Index’s inception. Perth saw the steepest decline in affordability, dropping by a staggering 13 per cent, followed by Adelaide at 8 per cent, Melbourne at 6 per cent, Sydney at 5 per cent, and Brisbane at 4 per cent.

This trend highlights how rapidly affordability has worsened across major cities, with Perth experiencing the most significant shift. Now the least affordable city, Perth’s median rents have reached $629, consuming 31 per cent of median incomes—a sharp increase from just four years ago, when rent accounted for only 20 per cent of income. Sydney follows closely, with a median rent of $720, taking up 30 per cent of median incomes.

Ellen Witte, Principal and Partner at SGS Economics and Planning and lead author of the report, explained: