Melbourne rents: tenants’ nightmare worsening as listings slump in April

The city’s rental squeeze is worsening as new figures show listings are plummeting — with almost 32 per cent less properties available compared to last year.

Sahil Yadav and his partner Mo Yadav have copped a 22 per cent rent increase that their landlord is requiring — but feel like they have to accept it especially with even less rentals available at the moment. Picture: Jake Nowakowski

Melbourne’s rental squeeze is worsening as new figures show listings plummeted in April.

Data from PropTrack reveals new rental listings posted on realestate.com.au fell by 20.8 per cent last month, the lowest since August 2020.

With fewer properties coming on to market, total rentals available on realestate.com.au were down 31.3 per cent year-on-year and 35.6 per cent below pre-pandemic levels.

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4/367 Nepean Highway, Chelsea is available for rent for $640 per week.

Inside 4/367 Nepean Highway, Chelsea.

The Chelsea townhouse comes with three bedrooms, two bathrooms and two car spaces.

PropTrack director of economic research Cameron Kusher said several factors were having a cumulative impact on the rental crisis.

“We saw a big breaking up of sharehouses and that meant more people were demanding rental properties,” Mr Kusher said.

“Initially, a lot of those people moved out of Melbourne but now … they are moving back,” he said.

“We’ve seen a lot of people that own investment properties selling their properties off, that’s reduced supply.

“The more recent impact on this is that overseas migration into Australia has ramped up really quickly.”

Mr Kusher said Melbourne’s historically renter-centric areas had seen a big increase in demand and big drop in supply.

The total number of properties available to rent in Melbourne’s inner suburbs was down 34.2 per cent, with worst-hit areas such as the inner east falling 39.7 per cent and the inner south 37.1 per cent.

After enduring a four-month search for a home and finally finding an apartment in Southbank in 2022, Sahil Yadav, 36, and his partner have accepted a whopping 22 per cent increase to their monthly rent from August out of fear of facing another lengthy search for a home.

Sahil Yadav and his partner Mo Yadav inside their Southbank apartment, have had their rent increased 22 per cent. Picture: Jake Nowakowski

Mr Yadav said their landlord attributed the staggering increase to “hot rental market conditions”.

“The quest for a place to call home in this vibrant city has been reminiscent of a rigorous job search, complete with meticulous rental applications, fierce competition, and exorbitant rent hikes,” Mr Yadav said.

“We carefully weighed our options and approached the real estate agent to discuss the unexpected spike.

“Unfortunately, our hopes of negotiating the increase were swiftly dashed when the agent pointed out similar listings with even higher rents.

“The agent warned us that come August 2023, when our new lease was set to commence, rental prices were expected to surge even further.”

14 Dight St, Collingwood is up for rent for $695pw.

Inside the Collingwood rental’s living area.

The home has three bedrooms and one bathroom.

Mr Yadav said the couple were now grappling with difficult decisions regarding their household budget.

“Faced with limited alternatives and fearing a protracted search for a new place, we reluctantly made the difficult decision to accept the substantial rent hike,” Mr Yadav said.

“It was a compromise we deemed necessary, considering the current rental market dynamics and the desire to avoid prolonged uncertainty.”

Tenants Victoria director of community engagement Farah Farouque said figures appeared to be yet another distressing dimension of the rental crisis.

“Not a day goes by without some new information confirming the pressures renters are under,” she said.

“The issues of rental supply and affordability bear down hardest on people on low to middle income across Melbourne and the regions.”

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Originally published as Melbourne rents: tenants’ nightmare worsening as listings slump in April