Why renters are struggling across Melbourne

If you think it’s tough finding an affordable place to lease in the suburbs, you’re not alone. Check out which parts of Melbourne have the most expensive weekly rents — including one municipality with a median of more than $500.

Affordable properties make up less than 5 per cent of the available rental market across Melbourne.

Affordable properties make up less than 5 per cent of the available rental market across Melbourne, the latest figures show.

This was down from just under 12 per cent a decade ago.

The figures come as the State Government this week starting capping rent rises to once every 12 months.

From March 2009 to this year, the percentage of rentals deemed “affordable” by the Department of Health and Human Services has plummeted in every metropolitan area except the City of Melbourne and Nillumbik.

One-bedroom residences were particularly hard to find, with no affordable properties in most regions — including traditionally more affordable areas such as Greater Dandenong, Hume, Whittlesea and Wyndham.

The department’s most recent rental report shows Yarra has the highest median rent — $514 a week — up from $430 five years ago.

It was followed by Surf Coast, going from $390 to $490 since March 2014, Port Phillip ($420 — $475) and Manningham ($420 — $470).

In April a Leader report revealed there could be more than 60,000 residential properties sitting vacant across greater Melbourne, while there were 82,000 Victorians seeking public housing.

The sky-high rents and “hidden” vacancies have bolstered community calls to raise the Newstart rate and reform housing taxes.

Victorian Council of Social Services chief executive Emma King said Newstart was set so low it was condemning people to a “life of indignity and potential homelessness”.

“We’ve gone off-track as a society when some people are working jobs and still living in poverty, while others are receiving income support and can’t afford a roof over their head,” she said.

Ms King said federal, state and local governments needed to work together to make housing more affordable.

“Part of this relates to taxes or incentives, and we absolutely need to reform negative gearing and capital gains tax to make the system fairer,” she said.

“Governments should also force developers to include social housing in big development projects, replace stamp duty with a fair and progressive land tax and establish a Housing Ombudsman so disputes can be resolved fairly.”

Council to Homeless Persons chief executive Jenny Smith said homelessness services were working hard to move vulnerable Victorians into housing, but there was often nowhere for them to go.

“We are again calling on the Victorian Government to commit to raising its investment in social housing to the national average and add 3000 new public and community-owned properties a year,” Ms Smith said.

“It is also vital the Federal Government play its role in at least matching the state government’s efforts.”

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Last week the State Government announced a cap on rent increases to once every 12 months, previously landlords were able to raise rent every six months.

The cap on rent increases applies to fixed term and periodic (month to month) tenancy agreements entered into from June 19, while existing arrangements will continue to apply until the lease ends.

Consumer Affairs Minister Marlene Kairouz said reforms made under the Residential Tenancies Act were making renting fairer for Victorians.

“Limiting rental increases to once every twelve months helps families who may be doing it tough to better balance their living costs, provides greater financial security and increases protections for tenants,” Ms Kairouz said.

HIGHEST MEDIAN WEEKLY RENTS IN VICTORIA

1. Yarra $430 (median weekly rent March 2014) — $514 (median weekly rent March 2019)

2 Surf Coast $390-$490

3. Port Phillip $420-$475

4. Manningham $420-$470

5. Stonnington $390-$450

6. Monash $380-$450

7. Glen Eira $380-$450

8. Boroondara $390-$445

9. Macedon Ranges $350-$440

10. Whitehorse $375-$430