Core Insights - The rental market in Australia is facing a significant challenge with a high demand for rental properties and insufficient supply, leading to long queues for viewings and bidding wars among tenants [1][3] - The median rent across Australia is projected to increase by 5% year-on-year by the first quarter of 2025, contributing to the ongoing pressure on tenants [3] - Tenants are adopting various strategies to stand out in the competitive rental market, including submitting applications quickly and offering higher rents when legally permissible [3][5] Rental Affordability - According to the PropTrack rental affordability index, rental affordability in Australia has reached a historical peak, with the lowest levels recorded since at least 2008 [5] - The report published in March indicates a continuous deterioration in rental affordability over the past year, with New South Wales experiencing the heaviest burden [5] - Victoria is the only state where rental affordability remains relatively better, although it has also worsened since 2021-22, but not as severely as other states [6]

Core Insights - National rents are becoming more affordable after pandemic-era spikes, with renters now spending 23.4% of their income on rent, down from 24.7% in April 2024 [1][3] - The median asking rent in April 2025 is $1,699, reflecting a slight increase of $5 from the previous month but remaining $60 below the peak in August 2022 [2][11] - The 30% rule indicates that most major U.S. metros are affordable for renters earning the typical household income, although rents are still approximately 20% above pre-pandemic levels [3][10] Rental Affordability Trends - Oklahoma City is the most affordable rental market, with median rent at $994, representing only 16.7% of the median household income [9][8] - Miami is the least affordable market, with median rent at $2,345, which is 1.3 times the estimated maximum affordable rent for median-income households [4][8] - Significant improvements in affordability have been noted in Southern markets like Miami and Tampa, as well as Western metros such as San Diego and Denver [3][8] Changes in Rent Burden - Five of the top 50 U.S. metros have a rent share exceeding 30% relative to median household income, indicating a slight improvement in affordability across these markets compared to last year [4][8] - The rent-to-income ratio has declined in major coastal and Southern California metros, signaling modest improvements in affordability [4][8] Market Dynamics - The national rental vacancy rate has increased to 7.1%, the highest since Q3 2018, creating a more favorable environment for renters [12] - An influx of new multifamily units is contributing to slower rental increases, easing pricing pressure [12][10] - April rents were $293 (20.8%) above pre-pandemic levels, but this increase is less than the 54% surge in the median price-per-square foot of for-sale homes over the same period [10][11]