Why this old newspaper listing has people talking

An rental ad from 1976 is serving as a sobering reminder of just how difficult it has become to rent a home in Australia today.

The ad lists a two-bedroom apartment with carport and kitchen for $35 a week, located in North Plymptom in South Australia.

It has been shared on Reddit's 'Adelaide' thread with the caption, "Friend found this clearing out her ol man's cupboard... be prepared."

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"NORTH PLYMPTOM: Modern 2 bedroom unfurnished flat recently redecorated, with built-in robes and dressing table and built-in kitchen table and chairs, ground floor in block of 6 only with covered carport," the ad reads.

"$35 p.w. Enquiries 297 4308."

Among the rental listings are ads asking for "married couple or family" or "suitable adults."

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The median income in Australia in the 1970s was $6,302 meaning the cost of this rental accounted for 28 per cent of income.

Comparing this to today, the average cost of a two-bedroom unit in the same suburb is now approximately $488.

With the median income in Australia now $54,890, that means rent now accounts for 46 per cent of income, almost half.

This is an extraordinary difference and one that can be explained by the fact rental costs have increased by a greater rate than incomes have.

Apartment rents across Australia have increased six times faster than wages and the cost of renting a home has tripled, explaining why so many are struggling to make ends meet.

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When it comes to purchasing a home in the same suburb, that used to cost approximately $29,800 and will now set Aussies back an average of $463,500.

Although, the interest rate in Australia in 1976 was much higher at 10.38 percent where as the current interest rate is 4.35 percent.

Although when you factor in current cost-of-living factors including groceries, electricity prices and other household bills.