Victorian tenants slugged an extra $2600 a year in rent in these suburbs

Victorian renters are set to fork out as much as $200 extra a week in rent in some suburbs compared to this time last year. See where landlords are in control around Melbourne.

12 Kernot St, Spotswood can be leased for $725 a week.

Victorian tenants in more than 150 suburbs are facing a $2600 annual increase in their rent compared to a year ago.

New research from PropTrack revealed renters in 154 areas will be forking out $50-$200 more a week in February 2025 compared to 12 months prior if they were leasing a house.

While it’s a further blow for long-suffering tenants, the increases will be good news for landlords still grappling with interest rate repayments that remain at their second highest levels since June, 2023, as well as land taxes increased by the state government last year.

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Spotswood renters were the worst off, with the cost of a typical house in the suburb skyrocketing 31.7 per cent in just a year.

Those renting units won’t be much better off, with tenants in 85 Victorian suburbs set to pay $50-$115 more on their lease commitments compared to February 2024.

This three-bedroom house at 22 Meaden St, Ashburton, can be leased for $750 a week.

Ashburton’s median rental price for a house is $895 a week — up 27.9 per cent.

The hip-pocket hit is being driven by shortfalls of rental homes as landlords sell up in response to a raft of government-led changes to tenancy laws and land tax costs, as well as rising population surpassing the rate of new housing construction.

Rental Search Australia co-founder and managing director Jade Costello said Melbourne had lost significant numbers of landlords due to increased land taxes, many selling long-term investments.

“There’s just not as many rental properties out there,” Ms Costello said.

“Investors are deciding to not necessarily invest in Melbourne, and looking at other states where the land tax is not as high.

“There’s not going to be as many quality properties so demand, I think, will always be here.”

This two-bedroom house at 12 Kernot St, Spotswood, can be leased for $725 a week.

Spotswood’s median rental price for a house is $790 a week — up 31.7 per cent in the past 12 months.

She added that Melbourne was the most desirable location from her international clientele moving to Australia, especially those from the United Kingdom and New Zealand.

While Melbourne tenants hadn’t faced the same level of rent increases as the rest of the nation, REA Group senior economist Anne Flaherty said there was no question the city’s rental prices had risen significantly.

“There’s probably a lot of prospective homeowners who may be trapped in the rental market for longer because when rents increase, that erodes people’s ability to save for deposits,” Ms Flaherty said.

“Even if they’re not looking to buy a home, that disposable income has taken a massive hit for a lot of renters in Melbourne.”

She added that disposable income for a typical household was sitting close to record-low levels and when there were double-digit rental increases, this was pushing tenants to move and find more affordable options.

“We’re seeing younger people having to move back in with their parents,” Ms Flaherty said.

“Hopefully over the long term, we will see things improve. But at the moment, there is no planning in place that would make this happen.”

This two-bedroom townhouse at 5/180 Williamson St, Bendigo, can be leased for $430 a week.

Bendigo’s median unit price for a rental is $425 a week.

Ms Flaherty said because Victoria was not building enough homes for its population size there was a strong chance Melbourne was going to follow other capital cities in terms of seeing much higher price rises in the coming years.

Tenants Victoria chief executive Jennifer Beveridge said renting was unaffordable for many, with no sign that the pressure of high rents was abating.

“If rents have stopped rising, but renters are still paying too much, then renters remain in a difficult situation,” Ms Beveridge said.

“We have long called for the state government to introduce a fairness formula to guide the setting of fair rent increases.”

The four-bedroom house at 279 Eleventh St, Mildura, can be leased for $500 a week.

Mildura’s median house price for a rental is $480 a week — up 14.3 per cent.

The figures follow the Victorian government passing a raft of rental reforms proposed in its Housing Statement in 2023, including a ban on rental bidding and ensuring all homes advertised for rent met the minimum standards, coming into effect on November 1.

Ms Beveridge said the latest legislated rental reforms were welcomed, as housing was a human right and an essential service, which should be reflected in regulation and enforcement.

She added that Victoria needed landlords to act responsibly and be financially stable enough so they could meet their legal obligations and provide a home that met minimum standards.

“If we buy a hamburger, we expect it to be safe,” she said.

“The same should be true of renting a home.”

WHERE VICTORIAN RENTS HAVE INCREASED THE MOST – HOUSES

Spotswood: $790 a week – up $190 (31.7% )

Ashburton: $895 a week – up $195 (27.9% )

Werribee South: $580 a week – up $125 (27.9%)

Carrum: $650 a week – up $130 (25%)

Parkville: $1100 a week – up $200 (22.2%)

Braybrook: $550 a week – up $100 (22.2%)

Heidelberg West: $550 a week – up $100 (22.2%)

Dallas: $500 a week – up $90 (22%)

Edithvale: $783 a week – up $133 (20.4%)

Burnside: $560 a week – up $90 (19.1%)

Growth tracks annual rise.

Source: PropTrack

WHERE VICTORIAN RENTS HAVE INCREASED THE MOST – HOUSES

Alphington: $580 a week – up $115 (24.7%)

Kingsville: $420 a week – up $70 (20%)

Sunshine West: $470 a week – up $78 (19.7%)

Rosebud: $560 a week – up $90 (19.1%)

Nunawading: $550 a week – up $88 (18.9%)

Bendigo: $425 a week – up $65 (18.1%)

Heathmont: $530 a week – up $80 (17.8%)

Donvale: $600 a week – up $90 (17.6%)

Brooklyn: $540 a week – up $80 (17.4%)

Montmorency: $583 a week – up $85 (17.1%)

Growth tracks annual rise.

Source: PropTrack

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Originally published as Victorian tenants slugged an extra $2600 a year in rent in these suburbs