Australia is grappling with a severe housing affordability crisis, with many Australians finding it increasingly difficult to rent or purchase homes. Despite efforts to address the issue, the gap between housing costs and household incomes continues to widen, affecting a significant portion of the population.
In 2025, the National Housing Supply and Affordability Council reported that housing prices and rents had reached record highs, while new housing supply failed to meet demand. Factors such as labor shortages, high material costs, and elevated interest rates have further constrained the construction of new homes.
The PropTrack Housing Affordability Report for 2025 highlighted that, despite slight improvements due to higher incomes and lower mortgage rates, affordability remained near record lows. A median-income household could afford just 15% of homes sold nationally, up from 11% the previous year.
The Productivity Commission's review of the National Housing and Homelessness Agreement found that the median low-income renter spent over a third (36%) of their income on rent, with about one in five low-income households left with less than $250 after paying their weekly rent.
In response to these challenges, the Property Council of Australia has called for a significant increase in affordable housing delivery. They argue that addressing tax burdens and supply barriers, rather than focusing solely on housing definitions, is crucial to meeting the demand for affordable homes.
Looking ahead, experts emphasize the need for systemic reform and ongoing investment from both government and industry to ensure that housing in Australia is affordable, fit for purpose, and secure for households of all incomes and in all locations.
For a visual perspective on how regional towns are being affected by the housing crisis, you can watch the following video: