--- title: "Rent vs buy in Australia 2026: is it cheaper to rent or b..." description: "On the latest official Australian household cash-flow data, renting still costs less than paying a mortgage. Mortgage households paid $114 a week more than rent" lang: en-AU json-ld: | { "@context": "https://schema.org", "@type": "Article", "headline": "Rent vs buy in Australia 2026: is it cheaper to rent or buy a home?", "description": "On the latest official Australian household cash-flow data, renting still costs less than paying a mortgage. Mortgage households paid $114 a week more than renter households in the 2019–20 ABS housing-cost survey, while a 20% deposit purchase in NSW now needs more than $322,000 in upfront cash to settle", "image": [ "https://images.unsplash.com/photo-1568605114967-8130f3a36994?w=1600&q=80" ], "datePublished": "2026-06-08T00:00:00+00:00", "dateModified": "2026-07-02T09:41:11.476+00:00", "author": { "@type": "Organization", "name": "CheckRate" }, "publisher": { "@type": "Organization", "name": "CheckRate" }, "mainEntityOfPage": { "@type": "WebPage", "@id": "https://checkrate.com.au/rent-vs-buy" } } --- [CheckRate ](/) [Library](/articles) Back Housing # Rent vs buy in Australia 2026: is it cheaper to rent or buy a home? On the latest official Australian household cash-flow data, renting still costs less than paying a mortgage. Mortgage households paid $114 a week more than renter households in the 2019–20 ABS housing-cost survey, while a 20% deposit purchase in NSW now needs more than $322,000 in upfront cash to settle 10 min read 08 June 2026 Updated 02 July 2026 Fact checked In this article 1. [Is it cheaper to rent or buy a house in Australia?](#is-it-cheaper-to-rent-or-buy-a-house-in-australia) 2. [Rent vs mortgage gap by Australian capital city](#rent-vs-mortgage-gap-by-australian-capital-city) 3. [How have interest rates changed the rent-vs-buy comparison?](#how-have-interest-rates-changed-the-rent-vs-buy-comparison) 4. [How much cash is needed upfront to buy a house in Australia?](#how-much-cash-is-needed-upfront-to-buy-a-house-in-australia) 5. [How much have rents increased in Australia since 2018?](#how-much-have-rents-increased-in-australia-since-2018) 6. [Are renters or mortgage holders under more housing stress?](#are-renters-or-mortgage-holders-under-more-housing-stress) 7. [Rent vs buy calculator: compare cash costs by state, deposit and holding period](#rent-vs-buy-calculator-compare-cash-costs-by-state-deposit-and-holding-period) Key Findings at a Glance $114/wk Average weekly housing-cost gap between mortgage and renter households, **2019-20 ABS** 5.98% Average rate on outstanding owner-occupier home loans, **April 2026** $323k Estimated cash to settle a **20% deposit** purchase in NSW, excluding concessions and LMI 32.2% Share of renting households in **housing stress**, 2021 Census Section 01 The Big Picture ## Is it cheaper to rent or buy a house in Australia? On the latest official national household housing-cost data, renter households paid $114 a week less than mortgage households on average in 2019–20. In the 2019–20 ABS Housing Occupancy and Costs survey, mortgage households paid an average of **$493 a week**, compared with **$379 a week** for renter households. The cash-flow gap is likely wider for many new buyers in 2026, because mortgage rates and dwelling prices have risen since the latest national survey period. But cash flow is only one part of the rent-vs-buy comparison. Renters do not build equity, do not benefit from property capital growth, and are more likely than mortgage holders to be in housing stress. Data release timing The 2023–24 Survey of Income and Housing will not be released because the ABS found the data did not meet its standards for official statistics. That leaves 2019–20 as the latest ABS Housing Occupancy and Costs release. Per week +$114 Mortgage minus rent · 2019-20 ABS Per month +$494 Same gap, monthly Per year +$5,928 Annualised at 52 weeks Monthly mortgage vs monthly rent in Australia National medians, 2006 to 2021 Census, with 2025 estimate - Median monthly mortgage - Median monthly rent **Note:** Weekly rent is converted to monthly using weekly rent × 52 ÷ 12, the standard rule used by lenders and housing analysts. The 2025 rent estimate is a population-weighted average of ABS April 2025 state medians. The 2025 mortgage estimate projects the 2021 Census mortgage median forward to reflect the higher-rate environment. Census mortgage medians cover all existing borrowers, so they understate what new buyers face today. **Source:** ABS QuickStats 2006, 2011, 2016 and 2021 Census; ABS Latest insights into the rental market (April 2025). ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Since the 2019–20 survey period, higher rates and dwelling prices have increased modelled repayment costs for many new buyers. The average rate on outstanding owner-occupier home loans climbed from **2.83%** in 2021 to **6.03%** in 2024, before easing to **5.98%** by April 2026. On a $700,000 loan over 30 years, that rate change lifts monthly repayments from around **$2,887 to $4,188**, an increase of about $1,300 a month before fees. State median weekly rents have also risen, with Western Australia up 75% since June 2018. But for new buyers, higher mortgage rates have added a larger dollar amount to repayments than rent increases in many markets. Cash flow is not the only measure. Mortgage repayments include some equity build-up through principal repayments, while rent is fully expensed. Mortgage households also tend to earn more than renter households, which is why renting can look cheaper in dollar terms but heavier as a share of income. At the **2021 Census**, 32.2% of renting households paid more than 30% of gross income on rent, equal to 915,317 households. Among mortgage households, the equivalent share was 14.5%. Renters were therefore more than twice as likely to sit above the standard housing-stress threshold. Two factors are not captured by the cash-flow comparison: - Capital growth belongs to the property owner, and - Principal repayments can build equity over time. The cash-flow test measures short-term payment differences. It does not measure long-term wealth outcomes. What is the average weekly housing cost for mortgage holders in Australia? + Mortgage households paid an average of **$493 a week** nationally in 2019-20. By state and territory: - NSW: $574 - ACT: $546 - NT: $534 - VIC: $501 - QLD: $447 - WA: $443 - SA: $390 - TAS: $346 Costs include mortgage repayments, council rates, water rates and body corporate fees. As a share of gross household income, mortgage households paid **16%** on housing costs nationally, compared to **20%** for private renters. How much more does a mortgage cost than rent in Australia per year? + Nationally, the annual gap was about **$5,928** in 2019–20, based on a **$114 weekly difference** between mortgage-holder and renter housing costs. City-level figures from the 2021 Census show a different comparison, using median monthly mortgage repayments against annualised median weekly rent: - Greater Darwin: $5,180 - Sydney and Perth: $4,684 - Melbourne: $3,720 - Brisbane: $2,596 - Adelaide: $2,104 - Canberra: $1,560 - Hobart: $4 (essentially at parity) Why can renting cost less in cash while buying builds equity? + Cash flow and long-term wealth are different measures. Mortgage repayments can include both interest and principal, with the principal portion building equity over time. Rent payments do not create property equity. Owners may also benefit from capital growth, although this depends on the property, market conditions and holding period. The cash-flow test measures which option costs less week to week — it does not measure long-term wealth outcomes. Section 02 By City ## Rent vs mortgage gap by Australian capital city In the 2021 Census, Perth and Darwin had the highest mortgage-to-rent ratios among Australian capitals, at 1.26 times annualised rent. That means median mortgage repayments were about 26% higher than median rent on the cash-flow measure. In every capital city, annualised median rent was lower than median mortgage repayments on the 2021 Census cash-flow measure, although the size of the gap varied: - Sydney: 1.19 times - Melbourne: 1.18 times - Brisbane and Adelaide: 1.13 times - Canberra: 1.07 times - Hobart: at parity, with rent and mortgage figures within a few dollars In dollar terms, Greater Sydney's median mortgage repayment was **$2,427 a month**, compared with median rent of **$470 a week**. Annualised, that left a **$4,684 gap** in favour of renting. Mortgage vs rent in Australian capital cities 2021 Census · Greater Capital City Statistical Areas, plus national medians Annualised $Annual gapRatio - Annualised mortgage - Annualised rent **Note:** Mortgage figures are 12 × the 2021 Census published median monthly mortgage repayment. Rent figures are 52 × the median weekly rent. The Canberra row uses the Australian Capital Territory geography. The Australia row gives national medians for context. **Source:** ABS 2021 Census of Population and Housing, All persons QuickStats. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) $5,180 Largest capital gap Greater Darwin had the biggest annual gap of any capital Median mortgage households in Darwin paid **$25,200 a year** against **$20,020** in median rent, the largest absolute gap. Sydney and Perth tied for second at $4,684 a year. Hobart was the only capital where the two figures were essentially equal. 2026 Reality Check New-buyer mortgage costs are higher The 2021 Census mortgage medians cover all existing borrowers, including households with older loans taken out at lower rates. A buyer entering the market in 2026 faces current dwelling prices and current mortgage rates. Using the March 2026 NSW mean dwelling price, a 20% deposit, the April 2026 average new owner-occupier principal-and-interest rate of 5.92% and a 30-year loan, the estimated monthly repayment is well above the 2021 Census median. Sydney · 2021 median $2,427/mo Median monthly mortgage repayment across existing mortgaged dwellings NSW · 2026 buyer $6,300/mo Estimated monthly repayment using a $1,324,800 mean dwelling price, 20% deposit, 5.92% rate and 30-year term Difference +$3,873/mo Modelled 2026 repayment compared with the 2021 Census median **Why the difference?** The gap reflects both the structure of the Census data and the change in market conditions. The Census median includes borrowers at different repayment stages, while the 2026 estimate uses current prices and rates. NSW's mean dwelling price rose from around $1.05 million in the June 2021 quarter to $1.32 million in the March 2026 quarter. Note: this is not a like-for-like Sydney price comparison — the 2026 scenario uses the NSW mean dwelling price because the ABS mean dwelling price series is published by state and territory, not by capital city. 2021 Census · Capital City Data Median mortgage and rent values by Australian capital city Greater Capital City medians, plus Australia national medians City / region Monthly mortgage Weekly rent Annual mortgage Annual rent Annual gap Ratio Sydney $2,427 $470 $29,124 $24,440 $4,684 1.19x Melbourne $2,000 $390 $24,000 $20,280 $3,720 1.18x Brisbane $1,863 $380 $22,356 $19,760 $2,596 1.13x Adelaide $1,562 $320 $18,744 $16,640 $2,104 1.13x Perth $1,907 $350 $22,884 $18,200 $4,684 1.26x Hobart $1,517 $350 $18,204 $18,200 $4 1.00x Darwin $2,100 $385 $25,200 $20,020 $5,180 1.26x Canberra $2,080 $450 $24,960 $23,400 $1,560 1.07x Australia $1,863 $375 $22,356 $19,500 $2,856 1.15x **Source:** ABS 2021 Census of Population and Housing, All persons QuickStats. The Australia row covers all private dwellings nationally. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) ### How the rent-vs-mortgage gap has changed since 2011 The mortgage-to-rent gap narrowed in every Australian capital across the last three Censuses. The unweighted average capital-city mortgage-to-rent ratio fell from **1.40 in 2011** to **1.22 in 2016**, then to **1.15 in 2021**. Greater Hobart recorded the largest shift, falling from 1.40 times annualised rent in 2011 to 1.00 times in 2021. Sydney's annual gap fell by **40%**, from **$7,752 in 2011** to **$4,684 in 2021**. The narrowing mainly reflects rents rising faster than median mortgage repayments over the decade. It does not necessarily mean buying became more affordable for new buyers, because Census mortgage medians include existing borrowers at different repayment stages. Mortgage-to-rent ratio in Australian capital cities, 2011 to 2021 Lower line = closer to parity - Sydney - Melbourne - Brisbane - Adelaide - Perth - Hobart - Darwin - Canberra **Note:** A ratio of 1.00 means median annualised mortgage repayments equal median annualised rent. Higher means buying costs more per dollar than renting. The dashed line marks parity at 1.00×. The ratio axis is truncated from 0.90 to 1.40 to show differences between cities. **Source:** ABS QuickStats 2011, 2016 and 2021 Census, Greater Capital City Statistical Areas. Ratios derived from median monthly mortgage repayment and median weekly rent. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) 2011 Census 1.40x Median capital-city mortgage was 1.40 times annualised rent 2016 Census 1.22x Median capital-city mortgage repayments were 1.22 times annualised rent 2021 Census 1.15x Median capital-city mortgage repayments were 1.15 times annualised rent ### Why did the rent-vs-mortgage gap narrow? The gap narrowed because **median rents increased faster than median mortgage repayments** between the 2011 and 2021 Censuses. Median mortgage repayments did not fall across every capital, but rent growth was stronger in all cities. Across the decade: - Hobart: rent **+49%**, mortgage repayments **+6%** - Adelaide: rent **+28%**, mortgage repayments **+1%** - Brisbane, Perth, Darwin and Canberra: median monthly mortgage repayments **fell slightly**, while rents continued to rise - Sydney: rent **+34%**, mortgage repayments **+12%** Sydney recorded the largest dollar increase on both sides, but rent still grew almost three times as fast as median mortgage repayments in percentage terms. Rent vs mortgage repayment growth in Australian capital cities Percentage change in median rent vs median monthly mortgage between the 2011 and 2021 Censuses, ranked by rent growth - Rent growth (median weekly) - Mortgage growth (median monthly) **Source:** ABS QuickStats 2011 and 2021 Census, Greater Capital City Statistical Areas. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Why the ratio matters A narrowing ratio does not necessarily mean buying became more affordable. It means median rents moved closer to median mortgage repayments between the 2011 and 2021 Censuses. In Hobart, the 2021 Census showed near-parity because median rents rose strongly over the decade, not because mortgage repayments fell materially. Reference Table Median weekly rent and monthly mortgage by Australian capital city, 2011 to 2021 Rent is median weekly. Mortgage is median monthly. Capital 2011 Census 2016 Census 2021 Census Change 2011 → 2021 Rent ($/wk) Mort ($/mo) Rent ($/wk) Mort ($/mo) Rent ($/wk) Mort ($/mo) Sydney $351 $2,167 $440 $2,167 $470 $2,427 Rent **+34%** Mort **+12%** Melbourne $300 $1,810 $350 $1,800 $390 $2,000 Rent **+30%** Mort **+10%** Brisbane $325 $1,950 $355 $1,861 $380 $1,863 Rent **+17%** Mort **\-4%** Adelaide $250 $1,545 $285 $1,517 $320 $1,562 Rent **+28%** Mort **+1%** Perth $320 $2,000 $360 $2,000 $350 $1,907 Rent **+9%** Mort **\-5%** Hobart $235 $1,430 $260 $1,402 $350 $1,517 Rent **+49%** Mort **+6%** Darwin $360 $2,167 $420 $2,200 $385 $2,100 Rent **+7%** Mort **\-3%** Canberra $380 $2,167 $380 $2,058 $450 $2,080 Rent **+18%** Mort **\-4%** **Source:** ABS QuickStats 2011, 2016 and 2021 Census, Greater Capital City Statistical Areas. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) How to read the city data Census mortgage medians cover existing mortgaged dwellings, including loans taken out in earlier years. They average across different loan sizes, repayment stages and purchase periods, so they can understate what a buyer entering the market in 2026 would face. Rent figures have also changed since the 2021 Census. Which Australian capital is the most balanced for rent vs buy? + Greater Hobart was the most balanced capital city in the 2021 Census. Median annualised mortgage repayments were **$18,204** against **$18,200** in annualised median rent — a gap of $4, or a mortgage-to-rent ratio of **1.00**. Every other capital still favoured renting on cash flow: - Canberra: 1.07 times - Brisbane and Adelaide: 1.13 times - Melbourne: 1.18 times - Sydney: 1.19 times - Perth and Darwin: 1.26 times (highest) Are 2021 Census mortgage figures still relevant in 2026? + The 2021 Census mortgage figures are useful as a historical benchmark, but they are not a current new-buyer repayment estimate. Census medians cover all existing borrowers, including households with older loans taken out at lower rates. Using the March 2026 NSW mean dwelling price of about $1.32 million, a 20% deposit, the April 2026 average new owner-occupier principal-and-interest rate of 5.92% and a 30-year term, the modelled monthly repayment is about **$6,300**. That is around 2.5 times the 2021 Census Sydney median of $2,427. Section 03 Rate Cycle ## How have interest rates changed the rent-vs-buy comparison? Average mortgage rates more than doubled in three years, climbing from 2.83% on outstanding owner-occupier loans in 2021 to a peak of 6.03% in 2024. That increase added pressure to mortgage repayments, while rents moved through a separate rental-market cycle. Rates have since eased to **5.98% by April 2026**, but they remain well above pre-2022 levels. New borrowing tells a similar story. Owner-occupiers taking out new **principal-and-interest** loans in April 2026 paid an average of **5.92%**, well above the 2.78% annual average paid by buyers across 2021. On a $700,000 loan over 30 years, that gap adds roughly **$1,290 a month** in repayments before fees. Average owner-occupier mortgage rate in Australia, 2019 to 2026 Annual average of monthly weighted rates, all institutions - Outstanding loans - New P&I loans funded **Note:** 2019 covers July to December only. 2026 shows the April 2026 monthly reading; earlier years are annual averages. Rates are weighted by lender volume across institutions reporting to APRA, covering more than 95% of housing credit. **Source:** RBA Lenders' Interest Rates (F6), April 2026 monthly series. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Rate moves of that scale **coincided with a sharp fall in** lending activity: - Total new home loan commitments hit a record **628,520** in 2021 under low-rate conditions - Dropped to **465,432** by 2023 as rates climbed - Recovered to **556,092** in 2025, but still 12% below the 2021 peak First-home buyer commitments followed a similar pattern, but had not returned to their earlier peak by 2025. They finished 2025 at **119,464**, against the 2020 stimulus peak of 137,720. 2021 peak 628k Series record for new home loan commitments 2023 low 465k 26% below the 2021 peak as rates climbed 2025 recovery 556k Still 12% below the 2021 peak The takeaway from a rent-vs-buy angle: the cash gap measured in 2019–20 is likely wider for many new buyers in 2026. Higher rates flow through to mortgage repayments, while rent movements are measured through a separate rental-market cycle. Even with rates pulling back from the 2024 peak, owner-occupier servicing costs in 2026 still sit well above the levels in the latest official like-for-like comparison. How much have rate rises added to mortgage repayments since 2021? + On a $700,000 loan over 30 years, the move from a 2.83% rate in 2021 to 5.92% in April 2026 lifted monthly repayments from around **$2,887 to $4,161**, a $1,274 increase, or about **$15,300 per year**. On a $1 million loan, the equivalent rate move adds around $1,819 a month. The peak 2024 rate of 6.03% pushed costs even higher before the recent easing. Have mortgage rates fallen from their 2024 peak? + This article does not forecast interest rates. The data shows owner-occupier outstanding rates had eased from a peak of around **6.11% in mid-2024** to **5.98% in April 2026**. Future rate movements depend on RBA decisions and lender pricing outside this dataset. Section 04 Upfront Cost ## How much cash is needed upfront to buy a house in Australia? **A 20% deposit purchase in NSW requires an estimated $322,610 in cash to settle**. That breaks down as a **$264,960** deposit, around **$54,900** in transfer duty, and about **$2,750** in registration, conveyancing and inspection fees. The deposit becomes equity, while transfer duty and purchase fees are upfront transaction costs. The week-to-week cash gap is important, but the upfront cost of buying creates a separate barrier before settlement. By state, the estimated transfer-duty cost on the mean dwelling looks like this: - **NSW:** around $54,900 on a $1,324,800 mean dwelling, the highest in raw duty dollars - **VIC:** around $51,900, and the steepest relative to price at about 5.5%, with the mean dwelling sitting just under the state's $960,000 flat-rate threshold - **WA and SA:** around $47,900 and $47,400 - **TAS and NT** have the lowest duty load, around $29,800 and $29,600 respectively None of these figures include any first-home buyer concession, which can reduce or remove duty in most states for properties below set thresholds. Once settled, repayments at the April 2026 average new owner-occupier principal-and-interest rate of 5.92% come to around **$6,300** a month over a standard 30-year term in NSW. Upfront cost dashboard · by Australian state Estimated cash to settle with the chosen deposit, based on the March 2026 mean dwelling price 5% deposit10% deposit20% deposit NSWVICQLDSAWATASNTACT New South Wales Mean dwelling price **$1,324,800** (Mar 2026). With a **20% deposit**, total cash to settle is **$322,610**, of which **$54,900** is non-recoverable transfer duty. Monthly mortgage at 5.92% over 30 years is around **$6,300**. Total cash to settle $322,610 Deposit (becomes equity) $264,960 Stamp duty (non-recoverable) $54,900 Other fees (registration, conveyancing, inspection) $2,750 Reference values $1,324,800 Mean dwelling price (Mar 2026) $1,324,800 Loan amount at chosen deposit $1,059,840 Monthly mortgage at 5.92% over 30 years $6,300 Duty as % of price 4.1% **Note:** Stamp duty figures use standard non-first-home-buyer transfer-duty schedules applied to the ABS state mean dwelling price. They exclude first-home buyer concessions, pensioner concessions, lenders mortgage insurance, and property-specific costs. Fees are estimated at $2,750 for registration, conveyancing and inspection. Monthly repayment uses the April 2026 average new owner-occupier principal-and-interest rate of 5.92% over a 30-year principal-and-interest term. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) A 5% deposit cuts the deposit cash, but it does not cut the duty. A NSW buyer using a 5% deposit still needs around **$123,900** in cash to settle, plus lenders mortgage insurance on top. A renter in the same scenario can typically move in with a four-week bond and one or two weeks of rent in advance. That gap is the main reason renting has lower upfront cash costs in the first few years. How much deposit do you need to buy a house in Australia? + A standard 20% deposit on the Mar 2026 mean dwelling price ranges from **$119,460 in the Northern Territory to $264,960 in NSW**. The national mean dwelling was $1,111,100, which means a $222,220 deposit at 20%. Smaller deposits down to 5% are possible, but typically require lenders mortgage insurance (LMI), which is added to the loan and can lift the total borrowed by several percentage points. How much is stamp duty in Australia by state? + Standard non-FHB transfer duty on Mar 2026 state mean dwelling prices: - **NSW:** around $54,900 (highest) - **VIC:** around $51,900 - **WA:** around $47,900 - **SA:** around $47,400 - **QLD:** around $45,100 - **ACT:** around $35,100 - **TAS:** around $29,800 - **NT:** around $29,600 (lowest) First-home buyer concessions can reduce or remove duty in most states for properties below set thresholds. Section 05 Rents Climb ## How much have rents increased in Australia since 2018? Annual rent inflation peaked at 7.8% in August 2023 and eased to **3.6% by May 2026**, less than half the peak rate. Renting has lower cash-flow costs than buying in the article's mortgage comparison, but rent is not a fixed cost. Dollar rent levels remain well above the 2018 baseline in every state and territory. State median weekly rents grew between June 2018 and April 2025 as follows: - **WA:** +75% ($350 to $613) - **TAS:** +59% ($270 to $430) - **SA:** +55% ($320 to $495) - **QLD:** +47% ($380 to $560) - **VIC:** +39% ($375 to $520) - **NSW:** +33% ($490 to $650), the slowest mainland growth, but still the highest dollar median - **ACT:** +27% ($470 to $595) - **NT:** +24% ($450 to $560) State median weekly rent in Australia, June 2018 to April 2025 Bars sized by percentage growth, with the April 2025 dollar median in the row label - Rent growth **Note:** Apr 2025 figures are ABS published medians for total private rentals, excluding government-provided dwellings. Growth shown is the percentage change from June 2018 to April 2025. **Source:** ABS Latest insights into the rental market, released 28 May 2025. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) In cash terms, a tenant on the NSW state median paid about $490 a week in mid-2018 and $650 a week by April 2025. Applying national CPI rent movements to May 2026 gives an indicative estimate of around **$675 a week**. Slower rent inflation does not mean falling rents Even at 3.6%, rents are still rising, just more slowly than at the 2023 peak. Median rents remain above their 2019–20 level in every state and territory. Why have rents risen so much in Western Australia? + Western Australia has had the largest rent rise of any state, with **75% growth from June 2018 to April 2025**. The state median climbed from $350 to $613 a week. Perth-driven housing inflation also showed the highest annual reading among capital cities in early 2026, at **14.8% in Feb 2026**. WA's rapid rent growth may reflect strong population inflows and tight rental supply. Section 06 Income Stress ## Are renters or mortgage holders under more housing stress? **32.2% of renting households were in housing stress against just 14.5% of mortgage households at the 2021 Census**, making renters more than twice as likely to spend over 30% of gross household income on housing. In total, 915,317 renter households nationally sat above this threshold. Renting has lower cash-flow costs than mortgage holding in the latest ABS housing-cost data, but renters face higher housing-stress rates as a share of income. Households paying more than 30% of income on housing in Australia, 2021 Census Mortgage stress (MAID) and rent stress (RAID) by state and territory - Mortgage stress - Rent stress **Note:** Stress is measured using the ABS mortgage affordability indicator (MAID) and rent affordability indicator (RAID), which classify mortgaged and renting households by whether housing costs are more than 30% of household income. Cases where income or housing-cost information is unable to be determined are reported separately in the ABS data. The Northern Territory's low rent-stress share partly reflects below-market public-housing tenancies. **Source:** ABS 2021 Census of Population and Housing, MAID and RAID by state and territory. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) The difference reflects the different income profiles of renter and mortgage households. Mortgage households earn more on average than renter households. Mortgage holders paid 16% of gross income on housing costs in 2019–20, while renters paid 20%. Among lower-income renters, **58%** of private-renter households in the bottom income bracket were already spending more than 30% of gross income on rent in 2019–20, before the recent run-up in rents. On the cash-flow measures used in this article, renting costs less than mortgage holding. But the income-share comparison points in the other direction. Renters pay less in dollars, but more as a share of income, and rent payments do not build property equity. How housing stress is calculated Stress shares are calculated as households paying more than 30% of gross income on housing costs, divided by total mortgage or renting households, matching the ABS publication approach. Excluding the "unable to determine" cases shifts the percentages up but keeps the gap between the two. Are renters or mortgage holders under more housing-cost pressure in Australia? + It depends on the question: - **On dollar costs:** mortgage holders pay more, with a $114-a-week gap (2019-20). - **On affordability share:** renters paid a higher share of income, at 20% of gross income on housing costs against 16% for mortgage households. - **On housing stress:** the gap was wider, with 32.2% of renters in stress vs 14.5% of mortgage households at the 2021 Census. How many Australian renters are in housing stress? + At the 2021 Census, **915,317 renting households** (32.2% of the 2.84 million renter households where data was available) paid more than 30% of gross income on rent. By state, the share ranged from **16.3% in the Northern Territory** (partly reflecting below-market public-housing tenancies) to **35.5% in NSW**. NSW, TAS, QLD and VIC all sat above 30%, while the ACT and NT sat below. Section 07 Calculator ## Rent vs buy calculator: compare cash costs by state, deposit and holding period On the default settings (NSW, 20% deposit, seven-year holding period and 5.92% mortgage rate), the buying scenario requires around **$605,239** more cumulative cash out than the renting scenario over seven years. This includes the deposit as cash out, even though the deposit becomes buyer equity rather than a non-recoverable cost. Most of the non-recoverable upfront gap comes from transfer duty and purchase fees, while the deposit affects how much cash is needed before settlement. On running cash flow alone, the renting scenario has about **$40,758** less annual cash out than the buying scenario, before capital growth, principal equity, maintenance, insurance, strata costs or investment returns on unused cash are considered. National averages hide a wide spread of household scenarios. The interactive calculator compares state, deposit size, mortgage rate and holding-period assumptions. It should be read as a cash-flow comparison, not a full rent-versus-buy wealth comparison. Cash flow comparison Buy vs rent cash flow calculator (Australia) State or territory NSWVICQLDSAWATASNTACT Deposit 5%10%20% Holding period 5 yrs7 yrs10 yrs15 yrs Mortgage rate % p.a. Default is the Apr 2026 average new owner-occupier P&I rate. Mean dwelling price · **NSW** $1,324,800 Monthly mortgage repayment $6,300 Monthly rent at state median $2,903 Annual mortgage cost $75,598 Annual rent at state median $34,840 Year 1 cash to buy (upfront + 12 mo repayments) $398,208 Year 1 cash to rent (12 mo + 4-week bond) $37,520 Total cash difference over period +$605,239 more to buy Cumulative cash out: buy vs rent - Cumulative cash to buy - Cumulative cash to rent Renting frees up around **$40,758 a year** of cash flow on this scenario, before the deposit and duty savings. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) This is a cash-out comparison, not a wealth comparison The figures above show how much cash leaves the household account under each path. They do not include capital growth on the property, equity built up through principal repayments, the opportunity cost of holding the deposit in cash, or maintenance, insurance and strata costs on the buying side. Those factors can materially change the long-term comparison. The calculator should be read as a near-term cash-flow comparison, not a complete decision framework. General information only This article is based on publicly available data from the Australian Bureau of Statistics, the Reserve Bank of Australia, and state and territory revenue offices. It is general information only and does not constitute financial, tax, property or legal advice. This article does not replace guidance from a licensed financial adviser, mortgage broker or qualified property professional. References 1. [ABS Housing Occupancy and Costs, 2019-20 financial year](https://www.abs.gov.au/statistics/people/housing/housing-occupancy-and-costs/2019-20): Mean weekly housing costs and housing-cost-to-income ratios by state, tenure and landlord type, released 25 May 2022. 2. [ABS 2021 Census of Population and Housing, All persons QuickStats](https://www.abs.gov.au/census/find-census-data/quickstats/2021/AUS): Median monthly mortgage repayments and median weekly rent by Greater Capital City Statistical Areas and nationally; MAID and RAID indicators. 3. [ABS Total Value of Dwellings, March Quarter 2026](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/total-value-dwellings/mar-quarter-2026): Mean dwelling price by state and territory, released 9 June 2026. 4. [RBA Lenders' Interest Rates (Table F6)](https://www.rba.gov.au/statistics/interest-rates/): Historical data: average outstanding and new owner-occupier housing loan rates, April 2026 monthly series. 5. [ABS Lending Indicators: March Quarter 2026](https://www.abs.gov.au/statistics/economy/finance/lending-indicators/mar-quarter-2026): Number and value of new home loan commitments, owner-occupier and investor, original series, annual totals 2005 to 2025. 6. [ABS Consumer Price Index, Australia, May 2026](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/may-2026): Rents component, monthly and annual movement, released 24 June 2026. 7. [ABS Latest insights into the rental market](https://www.abs.gov.au/articles/latest-insights-rental-market): Median weekly rent by state and territory, June 2018 to April 2025, released 28 May 2025. 8. [State and territory revenue offices (transfer duty schedules)](https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty): Standard non-FHB transfer-duty schedules in force during 2025 to 2026. 9. Methodology : Stamp duty estimates apply state and territory transfer-duty schedules to ABS March quarter 2026 mean dwelling prices. Estimated cash to settle adds $2,750 for registration, conveyancing and inspection. Mortgage repayments use a 30-year principal-and-interest loan at the selected rate. Annual rent estimates use April 2025 ABS state median rents uplifted by national CPI rent movements to May 2026. Figures are rounded for presentation. ## Data Snapshots ![mortgage vs rent by capital city](https://eznpqfufanyahmlyjhnj.supabase.co/storage/v1/object/public/article-covers/snapshots/03e517d2-481e-4723-8c56-1d8b1b238848/mortgage-vs-rent-by-capital-city-wqfe.jpg) mortgage vs rent by capital city ![monthly mortgage vs rent australia](https://eznpqfufanyahmlyjhnj.supabase.co/storage/v1/object/public/article-covers/snapshots/03e517d2-481e-4723-8c56-1d8b1b238848/monthly-mortgage-vs-rent-australia-5381.jpg) monthly mortgage vs rent australia ## Related research [ ![Most affordable states for first-home buyers in Australia](https://eznpqfufanyahmlyjhnj.supabase.co/storage/v1/object/public/article-covers/03e517d2-481e-4723-8c56-1d8b1b238848/1783042869637.jpg) Housing 03 July 2026 · 14 min read ### Most affordable states for first-home buyers in Australia Tasmania has the lowest mean dwelling price of any Australian state and the smallest average first-home buyer loan. 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