Victoria rental crisis: Suburbs considered ‘horrid’ to rent in revealed
Australia’s rental crisis has hit this state as hard as any, amid claims ‘the market has failed’ and a ‘massive surge’ in social housing is urgently needed.
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Almost half of Victoria has been labelled a “horrid” place to rent and a leading property pundit believes the state has failed tenants so badly a “massive surge” in social housing is needed.
New research from Suburbtrends’ Rental Pain Index shows 210 areas scored above 75, with Wheelers Hill in Melbourne’s east the worst.
The Index assessed 508 regions around the state, ranking areas based on rental increases, affordability and vacancy rates with those nearing 100 indicating the worst conditions for tenants.
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And things are getting tougher, with 18 suburbs that scored 90 and above in the latest data, compared to the worst Victorian suburb in Suburbtrends’ last report in July scored 86.
Founder Kent Lardner said Victoria was at an inflection point where the cost to build property was so high that the only way to get a return on an investment was to set rent at an unaffordable level, suggesting the “market has failed”.
“Land costs (and) construction costs have risen so much that it is forcing us to keep rents at such a high level that the average person can’t afford them anymore,” Mr Lardner said.
He added that a “massive surge” in social housing was now the “only answer” he could think of to ease housing affordability.
The worst area in Victoria for renters according to Suburbtrends is Wheelers Hill which scored 96.
Harcourts Judd White chief executive Dexter Prack said Wheelers Hill was “highly sought after” and the demand was incredibly strong.
“Demand for property in Glen Waverley and Wheelers Hill is extremely high due to the schools we’ve got and rents just keep going up,” Mr Prack said.
“Wheelers Hill is one of the hardest places or worst places to rent in at the moment.”
Tenants Victoria director of community engagement Farah Farouque said if vacancy rates were lower than 3 per cent, it was generally considered a tight market where renters were competing for available properties and rental prices were rising.
The report showed 453 of 508 assessed regions in Victoria had vacancy rates under 3 per cent.
“This scenario is proving deeply challenging for many Victorians as they try to secure a safe, secure and affordable rental home close to jobs and services they and or their families require to flourish,” Ms Farouque said.
“Victoria’s housing statement contains key improvements that we hope will address pain points renters face – but this change won’t happen overnight.”
It follows a recent report from PropTrack that revealed the Melbourne-wide rental vacancy rate had slipped to 1.19 per cent, its second lowest level since before the pandemic.
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