New South Wales (NSW) is generally the most expensive state for renting in Australia, primarily driven by Sydney's consistently high rental costs for both houses and units, making it Australia's priciest rental market overall, with affluent eastern suburbs seeing extremely high prices, although Victoria (Melbourne) and Canberra also feature significantly expensive markets.
New South Wales
Sydney remains Australia's most expensive rental market. Houses in Vaucluse rent for around $2,148 a week, while units in Barangaroo reach $1,435. Yields in these blue-chip enclaves sit below 3%, appealing to investors focused on capital security rather than income.
The most (and least) expensive states to live in for renters
Overall, the average rent price in the U.S. is $1,326 per month. Sixteen states — or 32% — came in below that figure, while 68% fell above it. Hawaii tops the state list, with a median rent price of $1,868 — $12 more than the runner-up, California ($1,856).
Victoria is the most affordable state for renters, even though affordability has deteriorated in recent years. A median-income household could afford 54% of rentals advertised on realestate.com.au.
Australia is known for its beautiful landscapes and vibrant cities, but living in some areas can be quite expensive. Queensland, Tasmania, and South Australia are recognized for having more affordable housing markets compared to New South Wales or Victoria.
The cheapest places to rent in Australia vary, but generally, regional towns in South Australia, Queensland, and Western Australia offer the lowest rents, while Hobart (Tasmania) is often the most affordable capital city, followed by Adelaide, with suburbs like Melton (VIC) and Gagebrook (TAS) being particularly cheap within their capital cities. Expect to find the absolute lowest prices in very remote areas, while major cities have affordable pockets further from the CBD.
Queensland is sunny and humid, making it an ideal destination for outdoor enthusiasts. Melbourne and Tasmania are cooler compared to other Australian states. Adelaide and Perth have warm, dry summers and mild winters, which might suit you if you're into warmer weather.
Western Australia (WA) is generally considered Australia's richest state, consistently topping economic performance rankings due to its strong mining sector, high exports (especially iron ore), and significant economic growth, leading in metrics like Gross State Product (GSP) per capita and overall economic strength.
The following states offer the most budget-friendly monthly average rent for a one-bedroom apartment: Oklahoma, $895; West Virginia, $914; Arkansas, $931; North Dakota, $935; Iowa, $955; Mississippi, $973; South Dakota, $974; Alabama, $1,040; Kentucky, $1,049; and Louisiana, $1,051.
1. Which state in Australia has the lowest crime rate? Tasmania and the Australian Capital Territory are considered among the safest because of crime rates below the national average.
New York, not surprisingly, is home to the most expensive place to live in the U.S. — the one and only New York City (https://www.apartmentguide.com/apartments/New-York/New-York/). The average rent there as of July 2022 is a migraine-inducing $5,812, a 41.02 percent increase from the year before.
Below is a detailed breakdown of the ten most affordable states to live in 2025:
In What State Do Most People Rent? New York is the state most populated by renters, with nearly 45.9% of its residents renting their household.
Sydney is the most expensive major city in Australia and the most expensive city overall. Townsville is 43% less expensive than Sydney, it is the least expensive city in the country. Insurance and financial services saw the largest increase in average prices from October 2023 to October 2024.
The Top 5 Most Expensive States to Live in 2026: What You Need to Know Before Moving
Living comfortably in Australia varies greatly depending on factors such as location, lifestyle and personal preferences. As a general guide, a single person living outside of a major city would need an annual income of $70 - $80k per annum or $5,800+ per month. Of course this total increases for couples and families.
For the second year in a row, North Dakota ranks as the best state for renters. Its affordability and high rental availability help make it an ideal place for lessees.
But despite the economic uptick of recent years, Tasmania is still the poorest Australian state.
Double Bay, NSW is often cited as Australia's richest suburb by average taxable income (Postcode 2028), with other top contenders being Sydney's Point Piper/Darling Point (2027) and Perth's Peppermint Grove/Cottesloe (6011), while suburbs like Bellevue Hill and Vaucluse consistently rank high for median house prices, dominated by Sydney's Eastern Suburbs.
Key findings. Crime rates in NSW are generally low compared to other Australian states and territories. Across both violent and property offences, NSW consistently records some of the lowest victimisation rates nationally, and for many offences, the lowest in Australia.
Hobart, Tasmania, is widely recognized as the cheapest major city, but smaller regional towns in Queensland and South Australia can offer even lower living costs.
ACT is ranked the most educated state or territory based on percentage, although as the largest state in Australia NSW still has largest actual number of persons with a Bachelor degree or higher.