Australia’s rental crisis has reached a new low – with fresh data showing the private market has effectively vanished for people on the lowest incomes, while even those in full-time employment are increasingly being priced out.
A new Rental Affordability Snapshot from Anglicare Australia paints a stark picture of a housing system advocates say is “in failure”, with affordability collapsing across the country.
The April 2026 snapshot examined 48,776 rental listings nationwide and found just one property across Australia was affordable for someone on JobSeeker. None were affordable for people on Youth Allowance.
Single pensioners are also being squeezed, with only 0.2 per cent of rentals deemed affordable for someone on the Age Pension.
Even full-time work is no longer a safeguard. A single minimum-wage worker could afford just 0.5 per cent of listings, while a couple on two minimum-wage incomes could afford only 14.8 per cent.
Anglicare Australia executive director Kasy Chambers said the findings show the crisis is deepening and spreading into parts of the workforce once considered secure.
“What’s changed is that the crisis continues to climb the income ladder,” Ms Chambers told NewsWire.
She said the biggest shift has been the growing impact on full-time workers.
“More and more people in full-time work are now being locked out. The most worrying trend is that this is no longer a shock, it’s becoming a permanent feature of the system.
“For years this crisis hit people on the lowest incomes first. Now it’s pulling in working people too. When even full-time work can’t secure a home, the system isn’t just under pressure, it’s failing the people it’s meant to serve.”
Ms Chambers said people on income support remain the most severely impacted, with no real access to the private rental market.
“People on Jobseeker and Youth Allowance can’t afford to rent at all without going into severe rental stress, and this has been the case since we first began the Snapshot,” she said.
“It shows that Centrelink payments have been stuck below the poverty line for far too long. Over the last decade, we have seen that the fastest decline is among low-paid workers and families, whose options have shrunk dramatically, which shows that the rental crisis is worsening each year.”
The snapshot also highlights how conditions have shifted over the past decade.
Ten years ago, a couple earning two minimum wages could afford roughly one in four rentals. Today, that figure has fallen sharply, highlighting a widening gap between wages and soaring rents.
Families are facing even tougher choices. A single parent on Jobseeker can afford just six listings nationwide, while a single parent combining the parenting payment with a minimum-wage income can afford only 2.6 per cent of the market.
The report also details the human impact behind the statistics.
Rebecca, a single mother in western Sydney working full-time in aged care, was forced to move further from her job and her son’s school after rent increases left her with nothing left after essentials.
Liam, a Brisbane university student on Youth Allowance, has been couch-surfing and sleeping in his car after being priced out of share houses.
Housing and social service leaders said the situation now demands urgent reform.
National Shelter chief executive Jackson Hills said when essential workers and income support recipients cannot find housing, it is “not a market under pressure. It is a system in failure”.
With the federal budget approaching, Anglicare is urging the government to wind back investor tax breaks and reinvest the savings into public and community housing.
“Phasing out the capital gains tax discount and negative gearing would shift incentives away from speculation and stop pushing up the cost of housing,” Ms Chambers said.
“The key is to use those savings to build public and community homes that people can afford to rent.
“Tax reform starts to shift the market over time, especially if the changes are phased out the next decade. Those changes will curb huge increases in housing costs and help tackle the inequality we’re seeing in wealth and housing.
She said investing in social housing delivers “immediate relief”, especially for people who are in the most need of help.
“The sooner we build homes people can afford, the sooner people will feel the difference.”
Anglicare said the opportunity now sits with government to reset the system.
“Our recent polling shows Australians want to see less spent on tax breaks for investors, and more spent on building homes people can actually afford,” Ms Chambers said.
She stressed the private market is “clearly not delivering”.
“Even full-time workers are being locked out, and people on Centrelink payments are seeing their options shrink year after year.
“In the next budget, the government has a real opportunity to reset the system by winding back unfair tax breaks and investing in the homes Australia actually needs.”
