Melbourne rental crisis: Affordable areas labelled a ‘dying breed’ as rents rise in 312 suburbs | PropTrack

Melbourne’s affordable rental suburbs are a ‘dying breed’ as tenants already smashed with $100 hikes face a five-year rental squeeze. SEARCH EVERY SUBURB

Melbourne’s affordable rental suburbs are a “dying breed” as tenants already smashed with $100 hikes face a five-year rental squeeze.

In the past 12 months the median rent for houses rose in 312 suburbs across Melbourne.

It fell in just three suburbs.

Figures from PropTrack show tenants in 53 postcodes endured a budget-breaking $100 a week increase.

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Alarmingly, this included areas that had been relatively affordable at less than $500 a week a year ago such as Ringwood, up $100 to $580 a week, Airport West, now at $550 a week, and Nunawading, $595.

Percentage-wise, the hardest hit suburbs were Kew East, where weekly rents rose 31 per cent to $950, Donvale 28.7 per cent to $740, and Oakleigh East 27.5 per cent to $638.

Units fared little better, with 249 suburbs recording rises. Oakleigh and Montmorency were among the 13 areas where the price of tenanting a typical townhouse, flat or apartment surged at least $100.

But experts are most worried about surges at the bottom of the market as data shows just 73 suburbs left where a median house can be leased for less than $500.

That is less than half the number of a year prior as 74 suburbs have hit or surpassed the $500 a week median rent since March 2023.

74 Bryson St, Canterbury is currently on the market for $1300 per week.

PropTrack economist Anne Flaherty said Melbourne’s affordable rental areas were a “dying breed”.

“And that’s really concerning given the median income of most households,” she said.

Rent rises were almost universal across Victoria with only 12 suburbs recording ­declines. They include Sorrento, down $218 to a $773 median, and Lake Wendouree, down $20 to $440.

HOUSE RENTS MAPPED

But real estate experts in some of the most-affordable areas warn the rental crisis could be even worse than the data show.

Sunbury-based Leading Real Estate boss Adam Sacco said while the figures showed the suburb’s median rent for a house was $495, he believed it had already surpassed the $500 mark and was climbing.

Mr Sacco said the area was losing substantial numbers of landlords as investors sold homes in response to land tax and higher interest rates.

19 Graze Rd, Sunbury will cost $480pw to rent.

With Melbourne’s rental vacancy rate at an almost ­record low 1.12 per cent, Ms Flaherty agreed that further increases in rent were likely.

While these might not be as steep as those in the past year, in the absence of major changes on immigration or new housing construction, it could take five years to see conditions start to improve.

However, Real Estate Institute of Victoria president Jacob Caine said five years was a long time for a prediction and an “incredibly ­dynamic world” was likely to find solutions to turn the rental crisis around.

UNIT RENTS MAPPED

“But I don’t think it will get better in the short term, at least until 2025 I think it will continue to be a problem,” Mr Caine said.

This week Master Builders Australia chief executive Denita Wawn said the lack of new housing around the ­nation had increased rental inflation to its worst level in 15 years, “in stark contrast to the overall rate of inflation, which dropped”.

Tenants Victoria community engagement director Farah Farouque said the data confirmed how tough it had become for those on low to moderate incomes to find a place in Melbourne.

“Single people, young families, retirees on pensions, no group in our community is untouched by the rental crisis and even the more ‘affordable’ suburbs are harder to get into,” Ms Farouque said.

“Housing is an essential service, and state and federal governments can’t drop the ball on this huge challenge.

“A key solution includes committing over the long term to build more social housing where rents can be stabilised.

“Too many people on lower incomes and, increasingly, middle incomes are caught in the brutal trap of soaring rents amid very low vacancy rates, which has become a key feature of the rental market.”

TENANTS’ TIPS

Bree Daly and Harley Williams have spent 18 months finding ways to make savings in their life to accommodate soaring rental costs.

And it’s the little things done enough that have made the big differences.

Ms Daly said it took just days to get ahead by spending $12 on a jar of instant coffee that would last for six or more weeks.

Harley Williams with his partner Bree and son Logan in Eynesbury have signed on to build a new home in the estate with the developer, who owns their current rental, agrees to let them put this year's rent towards a deposit on their new purchase. Picture: Ian Currie

Over a year that could add up to a staggering $3640 — seven weeks rent for a $500 home.

The pair have also used carpooling to minimise unnecessary petrol, and by relocating to within 2km of where Mr Williams works they have been able to stop using the car at all some days as he walks instead.

He added that cutting out buying lunch had been another big saver, taking a sandwich, some left overs or even just some Saladas and toppings helping put about $100 a week back into their pockets combined.

“It also means you are probably eating healthier as well,” Mr Williams added.

“A piece of fruit from home is much cheaper than buying a chocolate bar at morning tea.”

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Originally published as Melbourne rental crisis: Affordable areas labelled a ‘dying breed’ as rents rise in 312 suburbs | PropTrack