How much tenants need to earn to live in popular rental suburbs

The most popular rental suburbs will almost always demand top dollar, so how much do tenants need to earn to live in these hotspot neighbourhoods?

Using the rental rule of thumb that not more than 30% of one’s income should go towards rent, it’s easy obvious some tenants in these posh pockets are earning the big bucks.

“For landlords and property managers, a prospective tenant’s income level is important in determining whether to approve their application,” PropTrack economist Anne Flahertly said.

“Tenants looking to spend more than 30% of their household income on rent are less likely to have their applications approved. This is because tenants spending over 30% of their income on rent are considered to be in rental stress, according to the Australian Bureau of Statistics, and at a higher risk of being unable to meet rent repayments.”

However, with many tenants feeling the financial pinch of COVID-19, being able to continue paying rent at the rate they originally could afford becomes less feasible.

“If a tenant’s income changes during a tenancy, they are best to contact their agent or rental provider to advise them as soon as they are aware that there may be a problem in making their next payment,” said Kristen O’Connell, who is the business manager at Jellis Craig Richmond.

“Some rental providers may be in a position where they can offer a rent deferral or temporary reduction for a set amount of time, but some may be in a financial position where they cannot do this.

“There are some instances where tenants may need to seek alternate accommodation that falls within their budget. In this instance, both parties may come to a mutual agreement to end the tenancy.”

Fitzroy, Victoria

For renters seeking the best bars, restaurants and shopping in Melbourne’s north, Fitzroy is the ideal place to call home.

Rentals are made up of traditional Victorian terraces, modern warehouses and even converted shopfront dwellings.

The median rent is $700 per week, which means a household would need to be earning about $2350 per week to avoid rental stress.

Richmond, Victoria

In 2021, Richmond was dubbed one of the coolest suburbs in the world by TimeOut magazine.

Ms O’Connell represents properties in Richmond and said she deals with a diverse mix of tenants.

“Richmond is a very diverse suburb and as such offers accommodation to renters of varying income,” she said.

“We see properties from studio apartments in the vicinity of $250 per week to large high-end homes of $3000 per week-plus, and everything in between.”

Bondi, New South Wales

Bondi has been drawing renters for decades thanks to its world-famous beach, top food and nightlife options and close proximity to the Sydney CBD.

However, tenants can expect to fork out the big bucks to snag a rental in this desirable suburb, with the median weekly rent sitting at $1350.

That means a household would need to be earning an eye-watering $4000 per week.

Surry Hills, NSW

Coming in as the 19th coolest suburb in the world, according to TimeOut magazine’s ranking, Surry Hills is popular well with those in the creative community or trendy sit who want to live on the city’s doorstep.

The median rent is $875 per week, which would mean a household would have to have an income of $2900 per week.

Byron Bay, NSW

Thanks to A-list celebrities like the Hemsworth brothers and an influx of cashed-up city slickers moving to the area, Byron Bay has become the go-to destination for renters wanting to live their best lives.

Median rent is currently $950 per week, which requires a household salary of $3200 per week to not be under rental stress – so, not so good vibes.

Palm Beach, Queensland

Working from home during the day and taking a dip in the ocean at lunchtime is an appealing prospect for many remote workers who fled southern cities during lockdowns.

The median rental price in this Gold Coast suburb is currently $750 per week.

That would mean a household income of $3500 is needed to live comfortably, which is more than many sought-after city suburbs.

Teneriffe, Queensland

Made up of former woolsheds from a century ago, Teneriffe is now a go-to destination in Brisbane, where renters clamour over new properties as soon as they come on the market.

The median rent in the suburb is $973 per week, which means that a household would need to be earning $3250 per week to meet the 30% of income rule.

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