Why this matters: As housing costs continue to soar, even full-time workers are being pushed to the margins in Australia's largest city, signaling a fundamental breakdown in housing affordability that affects an entire generation of renters.

Sydney's rental market has reached crisis point, with new data revealing that even full-time minimum wage earners cannot afford a place to live, while those receiving government support have virtually no options at all.

Key takeaways:

According to Anglicare Sydney's 2025 Rental Affordability Snapshot, only 1.8% of rentals across Greater Sydney are affordable for minimum wage workers, down from 2.5% last year. For those on income support, the situation is dire with a mere 0.1% of listings – just 17 out of 13,334 rental properties – classified as affordable and appropriate.

"Housing stress has moved beyond the margins. Now, even some people working full-time can't afford to rent. If those on minimum wage have almost no affordable options, what hope do those on income support have?" said Anglicare Sydney CEO Simon Miller.

The report, conducted in mid-March, shows a dramatic decline in affordable housing options, with available rentals for minimum wage earners dropping from 1,464 properties in 2020 to just 227 in 2025 – an 84% decrease. Despite a slight recovery in total listings from 2024, the rental market remains 44% below pre-pandemic levels.

"The picture is dire. People are faced with impossible choices to ensure they have a roof over their heads, forgoing dental and medical appointments, fresh foods and other essentials," Miller explained. "If people are being faced with this choice, it means our housing system is broken and whoever leads our country next must commit to fixing it."

Share housing, often suggested as a solution for young adults, offers little relief. The research found only five out of more than 3,100 share listings in Sydney and Wollongong were affordable for a single person on JobSeeker.

For a family supported by JobSeeker with two children, there were only two affordable and appropriate properties available across Greater Sydney and the Illawarra. In half of the regions surveyed, households on income support payments couldn't find a single affordable rental option.

As the federal election approaches, Anglicare is calling for decisive action, including doubling the Housing Australia Future Fund, increasing JobSeeker payments to 90% of the Age Pension, and boosting Commonwealth Rent Assistance. At the state level, the organization advocates for 25,000 new social and affordable homes over the next five years.

While Anglicare is investing in affordable housing developments in areas like Merrylands and Dapto, Miller emphasized that non-profits cannot solve this crisis alone: "Housing policy must do more than just help first home buyers, and whoever forms government after the election must make affordable housing their first order of business."

Are you struggling to find affordable housing despite working full-time? How has the rental crisis affected your life choices and financial wellbeing? Share your experience in the comments.

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