Melbourne tenants cop $2900 extra charge in rent in past 12 months: PropTrack
Melbourne tenants have forked out an extra $55 a week in rent after its median rent price jumped by more than 10 per cent in just 12 months, PropTrack reveals. SEE WHY.
Melbourne tenants have been slugged nearly $2900 extra in the past year to cover the basic cost of rent.
That equates to about half a tank of petrol per week just to keep a roof over their heads.
New research from PropTrack revealed the city’s median weekly rental price jumped from $520 in June 2023 to $575 in June this year — an extra $55 a week out of renters’ back pockets.
RELATED: Single Aussie mums pushed out of rental market, housing crisis commission hears
See where Vic rents could surge up to 43 per cent
Melbourne tenant suffers a five-month search to find a rental
And tenants in the southeast had been hit the hardest, having to scourge up an extra $4160 over the year as the area’s median weekly rent price rose from $500 to $580.
In regional Victoria, rental prices didn’t rise as much, with its $450 median weekly lease value remaining flat over the last quarter — increasing by just $21 a week (4.7 per cent) in the past 12 months.
Tenants Victoria chief executive Jennifer Beveridge said they’d been receiving many inquiries about rent hikes of 30 to 50 per cent, which weren’t letting up.
“The rental market is failing too many, even though for more and more people renting is a permanent situation rather than a transition from the family home to home ownership,” Ms Beveridge said.
“We are calling for a ‘fairness formula’ to set reasonable limits on rent increases in Victoria.
“We need sustained effort from all levels of government and the renting sector to deal with the crisis of housing affordability.”
PropTrack senior economist Anne Flaherty said Melbourne had seen the strongest population growth of any capital city and the supply of homes wasn’t keeping up.
It comes after the Victorian government introduced a raft of new minimum standards for rental properties in June targeting energy efficiency and to assist in realising the transition towards net zero emissions by 2045.
New requirements for landlords include installing ceiling insulation and draught-proof windows and doors into their rental properties by October 2025.
Ms Flaherty said these reforms were going to encourage even more landlords to sell their investment properties as many felt “fed up” with the amount of taxes and compliance regulations they’ve dealt with over the last few years.
“In principle, it’s a great idea. It’s just very poorly timed, given the fact that there are a lot of people out there that are struggling to find a roof over their heads,” Ms Flaherty said.
“The fact that there have been more landlords selling than buying is definitely a factor that is reducing the overall supply of rental accommodation in the state.”
Real Estate Institute of Victoria (REIV) president Jacob Caine said for every dollar a landlord spent making their property more energy efficient, there should be a dollar deducted from their land tax.
“The government has acknowledged that rental providers will likely pass on these additional costs to tenants,” Mr Caine said.
“Tenants could enjoy the benefits of these upgrades without having to foot the bill.”
He said landlords have felt as if they’ve been “punched in the face” for the past four years and they were exiting the system on mass, so the timing for these new rental standards “couldn’t be worse”.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Home loan guru’s big money warning
100+ homes disappear from Victoria’s public housing
Melb home in beachside suburb sells for under $100k
sarah.petty@news.com.au
Originally published as Melbourne tenants cop $2900 extra charge in rent in past 12 months: PropTrack
Builder’s gamble pays off to smash suburb record
A Victorian builder took a risk on his recent construction in Melbourne’s north. Now the residence has sold for a suburb record price.
Tradie stand-off exposes Block liars, judges rip ‘squashed’ rooms
The true villains of the show get found out amid all the plaster problems, and contestants commit apparently mortal living and dining room sins, according to the judges.
Super chef’s flaming hot $20m plus Toorak mansion sale
High profile Melbourne restaurateurs Andrew McConnell and Jo McGann have sold their luxe Toorak mansion for a super price, in less time than it takes to prepare a menu in their fancy eateries.