A new report from Everybody's Home, a coalition of housing, homelessness, and welfare organisations, reveals that rental stress is no longer just a problem for low-income households, it's also hitting middle-class professionals hard.

Families on middle incomes are feeling the squeeze with up to 40% of their income going on rent.

Traditionally, rental stress is defined as spending more than 30 per cent of income on rent.

However, the report shows that in Melbourne, even those earning $100,000 per year, well above the median salary, are now paying around 38 per cent of their income on rent.

For those on the median income of $72,500, the burden soars past 50 per cent in some suburbs.

The suburbs where renters are hit hardest

The report identifies several Melbourne suburbs where renters are under extreme financial strain to meet the costs for the average weekly rent for a unit.

In Melbourne's 3004 postcode, the average weekly rent is $747.40.

This equates to 38.86 per cent of a $100,000 salary and a staggering 53.61 per cent for someone earning the median salary of $72,500.

Similarly, Bayside suburbs of Beaumaris and Black Rock have an average weekly rent of $746.79, which consumes 38.83 per cent of a $100,000 income and 53.56 per cent of a $72,500 salary.

The trend continues in the inner city suburb of Fitzroy, where the average weekly rent is $728.28, requiring 37.87 per cent of a $100,000 income and 52.24 per cent for those earning the median salary.

Everybody's Home spokesperson Maiy Azize said: "A $100,000 salary used to be considered a secure income, but our research shows people on this wage are struggling in both cities and regional areas because rents are so staggeringly high."

Melbourne isn't the only city facing a rental affordability crisis.

Across Sydney, Brisbane, and Perth, even those earning $130,000 per year are struggling to afford rent.

For lower-income earners on $40,000 per year, the situation is dire, with rental costs making it impossible to afford basic living expenses.

The report warns that low to middle-income earners, including essential workers such as nurses, teachers, and emergency responders, are increasingly being priced out of the areas where they are most needed.

"This report exposes the stark reality facing Australian renters everyday. Rental stress is no longer confined to those on lower incomes - it's affecting professionals, essential workers, and middle-income families who simply can't keep up with soaring rents," said Azize.

This is not just a personal financial struggle, it threatens the social and economic stability of cities, as communities risk losing the very workers who keep them running.

Azize warned: "These findings underscore an alarming shift in Australia's housing market. This crisis is stopping people from being able to live and work in their communities, leading people to delay major life choices, and threatening social cohesion."

(Source : Emily Rayner Editor – View 21 March 2025-Edited)