Australia’s Housing Crisis
What’s Really Going On?
The housing crisis in Australia has been building for decades — and now, it’s hitting renters, buyers, and even homeowners all at once. In this post, we break down the key issues through a simple Q&A format to help you understand what’s happening and why it matters.
Q: Is the housing crisis still a major issue in Australia?
Yes. Despite changing seasons and shifting headlines, the housing crisis remains a constant. The latest data shows that affordability is worsening across both cities and regional areas.
Q: How much are Australians paying in rent?
According to Cotality’s recent report, the median rent in capital cities is now $702 per week, while regional areas average $591 per week. These figures are pushing many households into financial stress.
Q: How does rent compare to average wages?
The ABS reports the average weekly wage at $2010, but that’s before tax and skewed by higher earners. Spending over 30% of your income on housing is considered distress — and many Australians are well beyond that point.
Q: What about people on minimum wage or welfare?
They’re struggling the most. Affordable housing is nearly impossible to find, and many are forced into overcrowded or unstable living situations.
Q: What’s causing the rental shortage?
It’s not just a lack of properties. Post-pandemic, more people are choosing to live alone or in smaller households, reducing the number of shared dwellings and increasing demand for individual rentals.
Q: Are homeowners better off?
Not necessarily. Those who bought property since 2010 are facing historically high mortgages and longer repayment periods, which affects their ability to save for retirement.
Q: How has homeownership changed over time?
Between 2000 and 2020, the number of households owning their home outright dropped from nearly 40% to under 30%. More people are carrying mortgage debt later into life.
Q: Who benefits in this market?
Mainly those who own property outright and investors. Renters, first-home buyers, and even recent homeowners are all facing financial pressure.
Q: What is the government doing about it?
While initiatives like the 5% deposit scheme and ambitious home-building targets are being promoted, they don’t address the immediate need for affordable housing.
Q: What’s the bottom line?
Australia is facing a housing crisis that affects everyone — renters, buyers, and owners. It’s a complex issue rooted in decades of policy decisions, and without bold action, it will continue to worsen.