New analysis by the Real Estate Institute of NSW (REINSW) reveals an alarming scenario for Sydney’s renters, with the average tenant in Australia’s most expensive rental market now experiencing mortgage stress – but without the mortgage.
Cotality’s latest Quarterly Rental Review shows the median rent in Sydney has now hit $807 per week, up 1.5% for the quarter.
Based on 2021 Census data and overlaying annual wage growth since, the REINSW has calculated the average weekly household income to currently stand at $2,393.
The cost of rent is therefore 33.7% of average household income. A household is typically said to be experiencing mortgage stress when the cost of servicing a mortgage is more than 30% of its income.
This puts the average tenant in the unenviable position of experiencing mortgage stress but without having a mortgage, says REINSW CEO Tim McKibbin.
Photo credit: Sam Ruttyn – REA – “Struggling renters could have extra sway at next federal election” https://www.realestate.com.au/news/struggling-renters-could-have-extra-sway-at-next-federal-election/
“When viewed through this lens, the true extent of Sydney’s rental crisis becomes even clearer,” says Mr McKibbin.
“The rental crisis is apparent in the huge queues of hopeful tenants who line up each weekend in the hope of securing a home. It’s also apparent in the proportion of income tenants who are lucky enough to have a home must spend on rent.
“Tenants on average must commit over a third of their income to keep a roof over their head.
“As both rents and house values continue to grow, fuelled by strong competition for a lack of properties, the hardship faced by renters looks set to increase and the prospects for those looking to buy become fewer, even if they only require a 5% deposit.
“The Sydney rental market urgently needs a significant injection of more rental properties and this requires radical policy solutions which encourage the fast-tracked delivery of new housing supply and more residential investment,” he says.
Real Estate Institute of New South Wales (2025, October, 9) Tenants in Mortgage Stress.. Without the Mortgage [Media Release] https://www.reinsw.com.au/Web/News/Media_Releases/2025/Oct/Tenants-in-Mortgage-Stress
Photo Credit: The Australian “Rental as anything: it’s getting crazy out there”