New data from the PropTrack Market Insight Report shows the proportion of affordable rentals had decreased from 76.6 per cent in March 2020 to just 36.5 per cent in April 2023.
In Melbourne, rental properties under $400 a week have more than have halved, down to 16.5 per cent in April 2023.
Higher rents have been caused by the high demand and low vacancy rates for rental properties, further increasing the already high cost of living in Australia.
Other findings from the report showed that houses for rent under $400 a week were at all-time lows across Australia, with an average of 12.63 per cent, down from 41.74 per cent in March 2020. Units and dwellings also had big decreases, down to 19.78 per cent and 16.19 per cent respectively.
In regional Victoria, affordable houses to rent were down to 29.40 per cent, units were down to 61.56 per cent and dwellings were down to 36.50 per cent.
PropTrack senior economist Eleanor Creagh said even with more support, renting was still very challenging in Australia.
“Although the increase to Commonwealth Rent Assistance is the largest in more than 30 years, rent assistance payments have long fallen behind soaring rental prices,” she said.
“The share of affordable rentals is plummeting, meaning conditions remain challenging for low-income Australians.”
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