Melbourne rent prices: Where you can still find an affordable rental close to the CBD
Finding houses and units in a number of inner-ring suburbs still offer reasonably priced options for Melbourne renters. See the cheaper pockets.
While rent price growth has slowed in the past year, the cost of renting remains significantly higher compared with pre-pandemic times.
Renters are facing tough conditions, however, there are still suburbs close to the city with affordable rental properties available.
National weekly rents rose by 7 per cent in the past year, reaching $620 in November, according to recent data from PropTrack. This was just half the growth rate of the prior year, marking a slowdown in market conditions.
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In Melbourne, the easing is even more apparent. Annual rent growth was only 6 per cent from November 2023 until November 2024, which was well below the 17 per cent recorded in the same period a year earlier.
While the slowing of growth offers some relief for renters in the city who have had to endure substantial rent rises, weekly rents are still about 35 per cent higher than February 2020.
Finding an affordable property has become more difficult, but homes in a number of inner-ring suburbs, those within the closest third in terms of distance to the CBD, still offer reasonably priced options.
For suburbs within 11kms of the Melbourne CBD, Brooklyn, Heidelberg West and Avondale Heights had the cheapest rental houses, where weekly median rents were $550, $550 and $570 per week, respectively.
Braybrook and Coburg North were also affordable with median house rents less than $600 per week.
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Gardenvale, Caulfield East and Kingsville topped the list for the most affordable rental units among inner-ring suburbs. The cost of renting a unit was $390, $410 and $420 per week respectively.
Units in Fairfield and West Footscray had weekly rents below $450 as well.
The increase of rental stock has been one key factor easing rental conditions. Since November 2023, total rental listings have risen by 7.1 per cent.
This is likely due to a return of investors and more people opting to purchase their first home instead of renting.
However, on a historic basis, demand is high and supply remains low.
As cost-of-living pressures mount and rent growth continues to outpace wage growth, more people will seek out cheaper rentals which could result in stronger price increases in budget-friendly areas.
This will further decrease the availability of affordable rentals.
To ensure that all Australians have access to affordable housing, it is crucial that the government prioritises building more well-located homes to meet the demands of our growing population.
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Originally published as Melbourne rent prices: Where you can still find an affordable rental close to the CBD