Over the past five years, rent has increased three times quicker than wages across Australia. 

According to Cotality’s latest Chart Pack, Australian rent is up 43.9%, while wages have only risen 17.5%. The gap is putting real pressure on renters’ household budgets. 

Western Australia is leading the increase with rent climbing 66% over the last 5 years, compared to a 18.5% wage growth. 

Tim Lawless, research director from Cotality, explains
“Since 2020, tight vacancy rates, smaller household sizes, and sluggish new housing supply have pushed the market into a very different phase, one where rents are clearly in the driver’s seat.”

This means demand is still outpacing supply. Renters will continue paying the price until more housing comes to the market; until then, relief is likely to remain slow.