December 1st, 2025Rents not affordable

Rental affordability across regional Victoria has continued to decline, falling to its lowest level on record, according to the 11th annual National Shelter-SGS Economics and Planning Rental Affordability Index.
On average, affordability has declined by 3 per cent across regional Victoria. The average renting household, earning $87,320, now spends 28 per cent of its income on a median rental. Rents in regional Victoria are now classed as Moderately Unaffordable with a RAI score of 107.
The Rental Affordability Index now includes Housing All Australians as a key partner, reflecting the critical role of business and public-private partnerships in addressing the nation’s housing crisis.
The index found a single person on JobSeeker faces Extremely Unaffordable rents, spending 61 per cent of their income on a rental. Meanwhile, single pensioners spend 38 per cent of their income on rent, and a single parent on benefits spends 43 per cent of their income, both facing Severely Unaffordable rents.
SGS Economics & Planning principal Ellen Witte said: “Affordability across regional Victoria has sharply declined since 2020, driven by large numbers of people leaving Melbourne, rising construction costs and a slower pace of new housing development.
“For a long time, regional Victoria has been seen as the pressure valve for Melbourne’s housing market, but that’s no longer the case. Rental affordability in regional cities such as Bendigo, Shepparton and Ballarat have continued to decline and are now considered ‘Moderately Unaffordable’ or worse for the average household.”
Robert Pradolin, founder and executive director of Housing All Australians, which has recently become a partner in the Affordability Index, said the rental crisis was having a major negative impact on regional economies and communities.
“From cafes and hotels to hospitals and childcare centres, Victorian businesses are struggling to find staff because there’s nowhere affordable for them to live nearby. The affordability crisis is imperiling many regional towns which are struggling to stay alive. If we want to see thriving regional economies, we need to invest in affordable homes for the people who work hard to keep our communities moving.”

Words: Donna Kelly