Young Private Renters Aged 23 to 24 Spent 47% of Income on Rent

Short summary

Research released by the Australian Institute of Family Studies on 26 August 2026 found that private renters aged 23 to 24 spent an average of 47% of their gross income on rent.

The figure comes from self-reported Growing Up in Australia study data collected in 2023-24. It is not a measure of advertised rents in August 2026 and it does not describe every young renter in Australia.

For the younger cohort, aged 19 to 20, private renters spent an average of 38% of gross income on rent. The calculation compared each young person's weekly rent with their weekly gross income.

Use the Rent-to-Income Ratio Calculator to apply the same arithmetic to current figures. Its result is a budgeting indicator, not a ruling that rent is affordable or unaffordable.

The key numbers

The AIFS housing spotlight draws on Wave 10 of the longitudinal study. The two age cohorts had 2,287 and 2,097 participants overall. The private-renter rent table used responses from 225 people aged 19 to 20 and 617 people aged 23 to 24.

Across both cohorts, 63% were living with their parents. About 85% reported concern about being able to afford a home in the future.

These percentages are published cohort estimates. They should not be read as a live national market average or a forecast.

How AIFS calculated the ratio

AIFS divided weekly rent by weekly gross income for young people living in private rental accommodation.

Rent-to-income ratio = weekly rent / weekly gross income x 100

The frequency can be changed without changing the ratio, provided both figures cover equivalent periods. Our calculator annualises weekly, fortnightly, monthly or annual amounts before dividing them.

For example, weekly rent of $450 and weekly gross income of $1,500 gives:

$450 / $1,500 x 100 = 30%

This arithmetic does not account for income tax, utilities, transport, food, debt repayments or the number of people supported by the income.

Why the income basis matters

The AIFS result used the young person's gross income. Another dataset may compare household rent with combined household income instead.

That difference matters in a share house or couple household. Comparing the full rent with one person's income can overstate that person's actual share. Comparing one person's rent contribution with total household income can understate it.

Choose one consistent basis:

• compare total household rent with total household gross income; or
• compare an individual's rent contribution with that individual's gross income.

The Income Tax Calculator can estimate income after tax separately. Do not substitute after-tax income into a ratio defined using gross income and then compare the result with a gross-income statistic.

Is 30% a pass or fail line?

No. A rent-to-income percentage is a screening measure, not a personal affordability decision.

ABS housing methodology commonly applies the 30% reference within the lower two income quintiles, known as the 30/40 measure. The 2026 Census rent affordability indicator also combines household rent and household income. Those methods are not interchangeable with the AIFS young-person measure.

A household above 30% may have savings, low other costs or a temporary income change. A household below 30% may still have high debt, medical, transport or dependant costs. Lease applications and housing-assistance rules use separate criteria.

What the findings may indicate

The figures show that moving away from the parental home can coincide with a large rent claim on gross income for some young private renters in these cohorts.

They also put the living-arrangement results in context. Almost half of the 23 to 24 year old cohort still lived with parents, while home ownership or partial ownership was reported by 8%.

The study does not establish that rent alone caused somebody to live with parents. Education, employment, relationships, care responsibilities, location and personal preference can also affect living arrangements.

For a separate official housing-data context, read which rent, mortgage and tenure questions appeared in the 2026 Census. Census housing results are planned for later release and will use different concepts.

What remains uncertain

• The observations were collected in 2023-24, not August 2026.
• The private-renter table samples were smaller than the overall cohort samples.
• Rent and income were self-reported.
• The results do not show current asking rents by suburb or state.
• The ratios do not include income tax or other living costs.
• The study cannot determine an individual's rental affordability, lease eligibility or future home ownership.

Sources

• AIFS: Living arrangements and housing, published 26 August 2026 and checked 27 August 2026.
• AIFS: Young Australians face a longer path to financial independence, published 26 August 2026 and checked 27 August 2026.
• ABS: 2026 Census rent affordability indicator, checked 27 August 2026.
• ABS: Survey of Income and Housing user guide, housing affordability, including the 30/40 measure. Checked 27 August 2026.

General information disclaimer

This article provides general information about published research and an indicative calculation method. It is not financial advice, tenancy advice, legal advice, a housing-assistance assessment, an eligibility decision or a recommendation. Results vary with the income and rent basis used. Check current records and the rules of any relevant authority before relying on a figure.

Last updated: 27 August 2026.