They keep Australia moving, but a new report claims most essential workers can barely afford to rent

Millions of essential workers are at risk of being squeezed out of Australia's rental market without vital housing reforms, a new report argues.

Hospitality workers earning the average wage for the job would only be able to afford 0.8 per cent of rentals on the market, according to data from the Rental Affordability Snapshot.

Only 80 rentals in Victoria were affordable under the average salary of a hospitality worker, and none in the ACT.

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The report, which analysed the price of over 51,000 rentals compared to the average wages of several occupations in Australia, also found that firefighters could only afford 3.2 per cent of rentals around Australia, and paramedics, on average, are only able to afford 2.3 per cent, or 1117 properties.

"It is a national disgrace that the people we all rely on – nurses, teachers, care workers, cleaners – cannot afford a secure place to live," Kasy Chambers from Anglicare, the publishers of the report, said.

"This report shows that even full-time workers in critical jobs are locked out of most rentals.

"In many parts of the country, affordability has gone backwards."

A common assumption is the problem is largely caused by a lack of supply; essentially, there are too many people renting but not enough houses on the rental market.

However, the report argues this year's figures highlight this isn't necessarily the case.

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"This year saw an increase in the number of rental listings surveyed for the first time in three years, and yet there was no notable or significant increase in affordability for any essential worker category," it said.

"The theory of trickle-down housing would assume that a thirteen per cent increase in total listings across the country would yield some notable increases in affordability."

Chambers argues urgent reform is required across the country.

"We need tax reform to stop pushing up the cost of housing," she said.

"We need to build at least 25,000 new public and community homes each year, rentals that essential workers can actually afford."

She believes the responsibility falls at the feet of state and federal governments: "The housing crisis is not an accident. It is the result of choices.

"These results are shocking, but they are also an opportunity for governments to change course and ensure that everyone has a safe, affordable home."

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