The least affordable suburb to rent in Australia is named - as concerning figures show Aussies are worse off today than four years ago

Australia's least affordable suburb to rent in has been named as worrying figures reveal national rates of rental affordability have gone from bad to worse. 

Seaforth in Sydney's north, about 12km southeast of the CBD, is the most expensive suburb to rent in any Australian city, new data has revealed. 

Renting in the leafy suburb, which boasts water views over The Spit and Middle Harbour, will cost prospective tenants an eye-watering $1450 per week. 

Six of the 10 least affordable suburbs to rent in Australia are in Sydney's north, according to National Shelter and SGS Economics' new Rental Affordability Index.

People opting to live in Northbridge, Belrose, Frenchs Forest, Warriewood and Avalon can expect to spend a large majority of their salary on rent.  

It comes as data collected by the rental affordability index found renters in every capital city are worse off now than during the Covid pandemic in 2019. 

Renting in suburbs previously considered affordable in cities like Melbourne and Brisbane would now put a strain on average household budgets. 

A household is considered to be under rental stress when costs of housing are greater than 30 per cent of their total income. 

Those renting in Seaforth, the least affordable suburb in Australia, would have to spend 65 per cent of their total household income on rent. 

The annual index, which compares rents to household incomes, reported the biggest jump in Sydney where median rental prices have increased by $100 in the past year to $650 per week - a jump of 18.2 per cent.

Affordability in the Harbour City has dropped by a staggering 13 per cent - meaning the average person would spend 29 per cent of their household income on rent. 

Melbourne and Perth also experienced a 10 per cent decline in affordability. 

However, it is regional Queensland that is now the least affordable place in Australia when comparing income to rental prices. 

Median rentals cost $553 a week, reaching the rental stress threshold of 30 per cent of an average household's pre-tax income going to housing. 

There are now far fewer more affordable areas Australian renters can try to move into, according to Ellen Witte from SGS Economics & Planning.

'It's really starting to hurt the economy, people have to live further away from jobs and businesses are struggling to find workers,' Ms Witte said.

Data collected for the index showed people on lower incomes suffered the most.

A single person on Jobseeker has to spend at least 75 per cent of their income on a one bedroom apartment in city areas and 53 per cent in the cheapest regional area.

Single pensioners need to spend at least half their income on rent in every capital city except Adelaide and Hobart, and would need to spend at least 32 per cent of their money on regional housing.

National Shelter chief executive Emma Greenhalgh said tenants had been smashed with rental hikes well beyond income growth.

'Rental affordability in Australia is going from bad to worse,' Ms Greenhalgh said.

'We have a rental crisis that's truly national, there's no place that's affordable for very low and low income households and moderate income households suffering. 

We cannot underplay the significance of this as both a social and an economic issue.'

In regional NSW, Jindabyne was the most unaffordable location with rent as a share of average household income estimated at 70 per cent. 

Ms Greenhalgh said the problem needed to be attacked from several angles including building more social and affordable housing, immediate rent relief and a national standard on price increases.

She said the nation needs to have a serious discussion about tax reform, particularly negative gearing policies and capital gains discounts.

'We're currently commodifying housing as a wealth tool and not a home,' Ms Greenhalgh said.

'These tax measures disproportionately benefit high income households.'

Housing Minister Julie Collins said the government was supporting the 30 per cent of people who rent, including through the $10 billion Housing Australia Future Fund intended to provide a pipeline of social and affordable rentals.

She also highlighted an agreement for states and territories to work on practical steps to increase renter protections, tax changes affecting build-to-rent investments and increasing Commonwealth Rent Assistance by 15 per cent.

'At a federal level, our focus is on improving housing supply, because this is the best way to improve housing affordability for renters and buyers,' Ms Collins said.