This report examines how rental prices have changed over the past decade. The findings show that Australia’s social housing system has failed to keep pace with demand. Rent increases are not confined to high income areas; they are a national problem, and they are affecting people from all walks of life.

The report focuses on asking rents, as distinct from actual rents paid, in order to reflect conditions faced by prospective renters and to measure price movement in the open market. These figures offer insight into how housing costs have changed for people looking for a new rental home.

The State of the housing system 2025 report recommended two targets for rebuilding Australia’s social and affordable housing system. This analysis estimates how many homes would need to be built to reach these targets. To meet either of the targets, governments must set binding targets with clear timeframes for new social housing construction.

Key findings

• Rents have soared in every Australian capital city, with the steepest increases in places once considered affordable.
• The proportion of homes that are social housing has declined, falling to just 4.1% in 2024.
• In many areas, asking rents have grown by more than 60% since 2015.
• To meet the National Housing Supply and Affordability Council’s 6% social housing target, Australia must build an average of 36,420 new social housing dwellings every year over the next decade.
• The Council’s longer-term recommendation – raising social and affordable housing to 10% of the total stock over 20 years would require the construction of around 1.09 million additional social housing dwellings by 2045.