Renters are spending a greater percentage of their income on keeping a roof over their heads, prompting calls from Homelessness NSW for the urgent construction of more social housing.
New data from the Australian Institute of Health and Welfare shows that 28% of renters across the country are in rental stress, paying more than 30% of their income. That figure has risen from 25.5% of renters in 2022-23.
In Sydney the median proportion of income spent on housing has risen to 22.2% in 2024-25, up from 17.5% in 2009-10.
The AIHW housing affordability report comes as SQM rental data shows significant increases in rents over the past three years across NSW.
Region |
Median Rent 2025 ($) |
Median Rent 2022 ($) |
3-Year Increase (%) |
Sydney |
852 |
778 |
9.4 |
Hunter |
613 |
576 |
6.5 |
Wollongong |
682 |
636 |
7.2 |
Riverina |
464 |
433 |
7.1 |
Tamworth |
448 |
419 |
6.9 |
North Coast |
645 |
618 |
4.4 |
Source: SQM Research |
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The increasing stress placed on renters has promoted Homelessness NSW to call for greater investment in social housing.
"The deepening housing crisis is pushing more people onto the streets because they simply can't keep up with soaring rents," said CEO Dominique Rowe.
"With more than 65,000 households waiting for social housing – some for up to a decade – we need bold, ambitious action that meets the scale of the problem.
"Everyone sleeping rough or struggling to keep a roof over their head deserves better.
"After decades of neglect, it's past time to properly invest in social housing and homelessness services.
"The state government must increase funding for homelessness services and urgently construct more social housing as more people are priced out of the broken rental market."
Homelessness NSW is calling for:
Increase social housing stock from 4.7% to 10%
Deliver a 30% increase in baseline funding for specialist homelessness services
