<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian rents have surged almost three times faster than wages over the past five years, stretching household budgets and pushing rental affordability to record lows.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national" rel="" target="" title="National"><span>National</span></a><span> rents have jumped 43.9 per cent over the five-year period to September 2025, compared with a 17.5 per cent rise in wages over the same period, according to the latest analysis from Cotality.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Experts said the widening gap marked a sharp reversal of the previous five-year period when wages were generally growing faster in most states and territories.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/national/isaac-herzog-visit-live-updates-sydney-protests-latest-news-headlines/ac0c2b2f-cd41-4a0a-abdf-ea20837c5cc3" target="_blank"><strong><span>Pro-Palestine protesters vow to continue after ugly clash with police</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/capital-gains-tax-discount-24000-millionaires-pocketed-half-the-gains-oxfam-australia-finds/d08e4b7a-1814-460c-b697-654ecd3cd517" rel="" target="" title="Nearly half of the capital gains tax discount went to just 24,000 people"><strong><span>Nearly half of the capital gains tax discount went to just 24,000 people</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Since 2020, a combination of tight vacancy rates, smaller household sizes and sluggish new housing supply has pushed the market into a very different phase, one where rents are clearly in the driver's seat," Cotality research director Tim Lawless said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Since then, tight rental markets, low vacancy rates and limited new supply have combined to push rents sharply higher while incomes have struggled to keep up."</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/rental-market-australian-rents-surge-almost-three-times-faster-than-wages-new-cotality-research-shows/bf31a33d-9916-4750-8417-627f683473ff" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Lawless said the gap between rents and wages highlighted how challenging conditions have been for renters.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"For many households, that means a lot less flexibility in the budget, and far fewer options about where and how they live," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/western-australia" rel="" target="" title="Western Australia"><span>Western Australia</span></a><span> has had the steepest rise in the country, with rents surging 66 per cent in the past five years, compared with an 18.5 per cent rise in wages.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/kangaroo-attack-man-left-with-horrific-injuries-in-north-east-victoria/f849471b-ea8e-471e-9612-53be0646dffe" target="_blank"><strong><span>Man's horrific injuries after kangaroo's 'gremlin hands' latched onto him</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>ANALYSIS:</span></strong><span> </span><a href="https://honey.nine.com.au/royals/king-charles-statement-andrew-mountbatten-windsor-did-prince-william-force-his-hand-opinion/48c5ac89-2d23-469f-a2d7-136f35ea7dec" target="_blank"><strong><span>King Charles has confronted an ugly truth. His hand may have been forced</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Even with wages growing a little faster than the national average, they have come nowhere near keeping up with housing costs in that state," Lawless said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The </span><a href="https://www.9news.com.au/australian-capital-territory" rel="" target="" title="ACT"><span>ACT</span></a><span> was the only market where rent and wages aligned over the five-year period to September 2025.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Lawless said rental conditions were not likely to return to normal without greater housing supply.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"With vacancy rates still around record lows in many markets and new housing completions running below what is needed to meet population growth, it is hard to see rents materially easing in the near term," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Unless wage growth accelerates meaningfully, or we see a step‑change in rental supply, the risk is that affordability will deteriorate further for lower‑income households in particular."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Lawless said policy measures that support additional housing supply, including more build‑to‑rent projects, incentives for private investment, and planning reforms that enable greater density in well‑located areas, would be critical to easing the pressure.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Closing the gap between rent and income growth will require a coordinated effort across governments, industry and investors," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The sooner we can bring more supply to market, the sooner renters will start to see some relief."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>