A Sydney CBD rental listing cramming three women into a single bedroom at $260 a week each has laid bare just how far the market has stretched renters.
Three single beds packed into one modest room, with little privacy to speak of, is the pitch in one of the country’s most expensive postcodes.
Tenant advocates say it’s not unusual.
NSW Tenants’ Union chief executive Leo Patterson Ross says shared rooms targeting students have been a fixture in the CBD for years, with young people trying to balance study and limited paid work while hunting for somewhere liveable.
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“Sydney CBD in particular has had these shared room arrangements targeting students for a number of years, and it really highlights the difficulties that students face in finding accommodation that supports their studies and limited time for paid work,” he told Yahoo News.
When Yahoo News looked closer, the apartment was set up to house as many as six people.
Even more eyebrow‑raising, the ad spruiked a windowless “cupboard” – essentially a single bed in a storage‑style nook with no natural light – for $380 a week and the sums tell the story.
This is some people’s idea of a rental nightmare – but scenarios like this are more common than you think. Source: Facebook
Three renters in that one bedroom would generate $780 a week.
Add the windowless room and the landlord is looking at a gross profit of $1160 a week for four people sharing a home.
By comparison, the average Sydney unit, which goes for about $734 a week, according to PropTrack and it doesn’t require sharing a bedroom with strangers.
Some in the industry argue a ceiling is looming as more Australians hit their affordability limit.
Stacey Holt, from Stacey Holt Real Estate Excellence, has suggested a “tipping point” will force some landlords to temper expectations as budgets snap.
“There is a certain price range that people cannot afford.”
A windowless ‘room’ that was also offered for $380 a week. Source: Facebook
But Patterson Ross cautions that relief looks distant, saying rents are likely to keep rising into 2026, albeit more slowly, and the pressure many tenants feel won’t meaningfully ease.
Fresh numbers back that up.
In the past week alone, Sydney house rents rose by an average $14.11, pushing the typical weekly bill to $1,128.89, with units close behind at $733.82.
Nationally, PropTrack’s latest Market Insight shows the median weekly rent climbed 1.6 per cent over the December quarter to $650 – an extra $1560 a year.
Capital cities match that $650 median, while regional markets have surged 7.3 per cent year‑on‑year to $590.
The split is stark.
Realestate.com.au senior economist Anne Flaherty
Hobart notched the strongest quarterly and annual growth among capitals, followed by Darwin and Perth, while Sydney remains the priciest market at $760 a week – a hit worth $9,620 a year more than Melbourne.
REA Group senior economist Anne Flaherty said the data highlighted a growing divide between houses and units, with unit rents rising faster over the past year as affordability pressures reshaped renter behaviour.
“Nationally, unit rents are up 6.7 per cent over the year compared with 3.2 per cent for houses,” she said.
“That reflects where demand is strongest, particularly in inner-city and inner-fringe locations where apartments are often the most affordable option.”
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