Renting vs. Owning in Australia
Finder's research examines whether renting or paying off a mortgage is more affordable in the current housing market.
The debate over whether it is cheaper to rent or buy a property has never been more relevant, particularly for low-income earners navigating Australia’s challenging housing market. Finder’s latest research sheds light on the cost-effectiveness of homeownership compared to renting.
Key Statistics
- As of August 2025, Sydney has the largest gap between mortgage repayments and rent, with average monthly mortgage payments at $5,290, compared to $3,135 for rent.
- Darwin is the only city where mortgage repayments ($2,397) are lower than average rent ($2,680), making homeownership the more affordable option.
- 46% of Australian renters are struggling to afford their rent.
- The highest levels of rental stress are in the Western Australia (70%) and Queensland (68%).
- 33% of mortgage holders are facing financial strain, with the most significant challenges in South Australia (71%) and Western Australia (61%).
Comparing Monthly Costs: Renting vs. Owning
Across major Australian cities, mortgage repayments generally exceed rental costs, making renting the more affordable option. Sydney has the largest gap, with average monthly mortgage repayments at $5,290, compared to $3,135 for rent.
This trend is also evident in Melbourne, Brisbane, Adelaide, Perth, Hobart and Canberra, where mortgage costs surpass rent by several hundred dollars.
Darwin is the only exception, with average mortgage repayments ($2,397) lower than rent ($2,680), suggesting homeownership may be a more viable option there.
Monthly Amortization vs Rent
Pros and Cons of Owning
| Pros of Owning | Cons of Owning |
|---|---|
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Pros and Cons of Renting
| Pros of Renting | Cons of Renting |
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Can a minimum wage earner afford a mortgage?
Affordability remains a pressing issue for many Australians, particularly those on lower incomes. Latest figures from the ABS show the average weekly earnings for full-time adults sit at $2,010. While homeownership remains largely unattainable for minimum-wage earners, renting is generally a more viable option for low-income households.
With property prices, interest rates and the cost of living continuing to rise, buying a home has become increasingly out of reach without financial support or a dual income. The higher cost of mortgage repayments compared to rent reinforces the notion that renting is the more practical choice for those earning lower wages.
Australia's Housing Struggles in 2025
Finder's August 2025 survey shows that 46% of Australians are struggling to pay rent, highlighting the ongoing housing affordability crisis. Rental stress is highest in South Australia at 75% and Western Australia at 74%, while Tasmania reports a lower rate of 27%.
Mortgage holders are also under pressure, with 33% struggling to keep up with home loan repayments. South Australia reports the highest stress levels at 65%, followed by Victoria at 61%, while Tasmania has the lowest rate at 32%.
Final Thoughts
The decision between renting and buying depends on individual circumstances. Renting offers greater flexibility and lower upfront costs, while homeownership provides long-term financial benefits through equity building.
However, in the current market, homeownership remains out of reach for many Australians, particularly those on lower incomes. With housing affordability an ongoing national concern, it is crucial for individuals to carefully assess their financial situation, lifestyle needs and long-term goals before making a decision.
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