Why Australians are struggling to find affordable housing

61% of renters faced multiple rent hikes in two years.

Australians are facing mounting challenges in securing housing as rents soar, house prices fluctuate, and property issues persist, according to The Real Property Report 2025.

The report, commissioned by Real Insurance with MyMavins, states that 73% of renters feel pressured to enhance their applications, with 77% believing they must stand out. More than half (57%) feel compelled to offer above the listed rent, sometimes by $124 per week, adding up to $6,000 annually.

Additionally, pet owners struggle to find housing, spending over nine hours weekly searching for pet-friendly properties. Leasing agents add to the frustration, with 60% of renters reporting negative experiences and 68% avoiding applications due to poor interactions.

Rent hikes worsen financial strain, with 61% experiencing two or more increases in two years. Many renters are cutting costs, with 48% reducing savings, 45% feeling financially stressed, 38% cutting non-essentials, and 34% struggling with bills.

Homebuyers also face challenges. About 60% encounter unexpected property issues post-purchase, even after inspections. Moreover, 66% feel misled by real estate agents, citing undisclosed damages (21%) and hidden fees (17%).

The process is emotionally taxing, with 40% feeling stressed and anxious. The biggest frustrations include moving (42%), surprise building issues (35%), and dealing with agents (34%). At auctions, 59% feel pressured to bid above budget.

Despite these struggles, 31% remain optimistic about homeownership, though 51% had to compromise on location due to high costs.

"Expensive rents are trapping renters,” said Joel Dignam, executive director of Better Renting. “The cost of everyday essentials, including housing, has got to a point where many renters face little chance of saving up a house deposit, especially when house prices are increasing."