Unity Jackson-Muir, Real estate reporter
First published 12 Nov 2026, 4:00am
Interest rate rises are pushing mortgage holders to the brink but shocking new data reveals almost 1.5 times as many renters can’t pay their bills while Aussie rents continue to skyrocket .
The Reserve Bank lifted the cash rate to its highest level since 2011 last week, prompting an outcry from mortgage holders, but experts say the debate has overlooked the impact on renters.
ABS data show that rents grew at the fastest rate since the late 1980s over the two financial years (between 2022 and 2024) with Aussies paying a record $73.7b on rents last year.
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Low rental availability is driving up rents across the country. Picture: Flavio Brancaleone
The latest quarterly data from realestate.com.au found the median rent in Australia has grown to $675 per week, leaving Sydney renters paying $2,600 more this year compared to 2025.
New survey data from Primara Research reveals almost half of renters missed or paid a bill late in the last month compared to 33 per cent of mortgagees and 18 per cent of outright owners.
A quarter of renters in the survey reported “usually” running short on cash after paying for essentials each month but only around one in seven mortgage holders said the same.
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Renters are struggling more than mortgage holders. Source: Primara Research survey
The survey also found that 29 per cent of renters over 35-years-old ran short compared to 17 per cent of under 35s, suggesting renters weren’t simply “young and irresponsible”.
One in five renters said they would be unable to raise $500 within a week for an unexpected payment compared to 10 per cent of mortgage holders.
Similar survey data from not-for-profit Everybody’s Home found 76 per cent of respondents would have to make sacrifices in their budgets if their rent or mortgage rose by just $20 a week.
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Tenants’ most common financial sacrifices were reducing energy use, limiting driving and avoiding the doctor.
Respondents said they were already making financial sacrifices with 48 per cent reducing their energy use, 40 per cent limiting driving and 38 per cent avoiding the doctor.
A little over a third of participants said they had delayed or abandoned plans to buy a home and 23 per cent said they feared further housing cost increases would push them into homelessness.
Spokesperson for Everybody’s Home Maiy Azize said renters mustn’t be overlooked when discussing the impacts of interest rates rises.
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Everybody’s Home spokesperson Maiy Azize said the latest hike will drive more people into severe housing stress and homelessness. Picture: NewsWire / Martin Ollman
“Renters have been forced to absorb rent increases for years that have left them making impossible sacrifices and no buffer as costs continue to climb,” Ms Azize said.
“Higher interest rates price more renters out from buying a home, and some landlords and agents will take any excuse to increase rents.
“This is why we need the federal government to step up with large-scale investment in social and affordable housing,” she said.
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Aussies spent $7.37b on rents last year. Picture: Max Mason-Hubers
Primara analysed ABS national accounts data and found that four fifths of increased spending on rents was directly attributable to higher prices and not more people renting.
Their analysis was conducted for Credit24 and consumer finance analyst Lee Carney said the gap between rents and wage growth was making it impossible for renters to “build a buffer”.
“Until that gap closes, many renters will find it hard to get ahead, however carefully they budget,” Mr Carney said.
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