There is considerable pressure on households across the country due to expensive rents.
In fact, the latest report notes that affordable homes and apartments for rent are at their lowest level in almost a decade.
Alice lives in a sharehouse in Sydney's western suburbs with two other people.
Although she shares he house with her flatmates, renting still makes up a large portion of her salary.
"It's definitely a significant burden, especially when you're young and trying to do your shopping while energy and heating prices are rising so much," Alice said.
A new report by ANZ and Corelogic found that the reduced supply of rental housing combined with the increase in renters is leading to significantly higher prices.
In the lower income brackets, around 51% of that is required for rent
Eliza Owen, who led this research, explains that incomes have increased, but not as much as rent and this has led to a deterioration in rental affordability.
Ms Owen estimates that households will spend around 31% of their income to pay rent.
"In the lower income brackets, around 51% of that is required for rent", Ms Owen said.
According to the report, the proportion of income required to service rent has increased across the country since the start of the coronavirus pandemic.
Sydney is still the most inaccessible market for home ownership
Rental affordability is more limited in Hobart and Adelaide.
Ms Owen said major cities such as Sydney and Melbourne are actually more affordable compared to the income of its residents.
In Sydney tenants use about 32 per cent of their income for rent, while in Melbourne they use about 26 per cent. The corresponding figure in Hobart is 34%, Ms Owen explained.
However, Sydney is still the most inaccessible market for home ownership, with city residents needing more than half their income to service a new mortgage.
It takes about 12 years to save the deposit for the down payment of a mortgage, which in many cases stands at 20%.
For renters like Alice, the dream of owning a home seems distant.
Alice said many of her friends have moved back with their parents, especially those who want to save money.
This, combined with the increased cost of construction, is pushing more and more people out of the housing market and and into the more competitive rental market.
