The country towns hardest hit by the rental shortage, prices hit new highs

A rental-property shortage across Victorian country towns is creating fears locals will be priced out, as prices hit new highs and applicant numbers soar. We reveal the hardest-hit towns.

There are many country Victorian towns that have a shortage of rental properties.

A shortage of rental properties across Victorian country towns is creating fears locals will be priced out of the rental market – and communities could struggle to attract workers.

Mayors from several rural and regional shires told The Weekly Times they were failing to secure workers for healthcare services, schools and local businesses due to the rental shortage.

Real estate agents said the shortage had seen record numbers for applications.

An influx of city dwellers – now able to work from home – has been blamed from the lack of rental properties along with reforms to the residential tenancy act. And in some parts of the state, property owners who have traditionally rented out their homes have instead turned to sites such as Airbnb – where they can make hundreds of dollars per night.

An analysis by The Weekly Times has found out of 55 rural and regional towns in Victoria, seven currently have no rental properties available – Bright, Mytleford, Terang, Heywood, Apollo Bay, Casterton, and Cobden.

A further eight have just one rental property available – Wycheproof, Warracknabeal, Kaniva, Ouyen, Mortlake, Stawell and Omeo.

And Yarra Glen has just six, Ararat has seven and Bairnsdale has 12.

Alistair Ward from LJ Hooker at Swan Hill said that region had been experiencing a shortage of rental properties over the past few years, which only increased when the pandemic hit and city dwellers moved in.

“From about June last year we started seeing 20-25 applications for rentals and 40-50 inquiries which is the most I have seen during my 14 years here,” Mr Ward said.

“The demand has pushed prices up, in some cases from $300 to $350 a week, and there are even applicants offering two to three months of rent in advance just to secure a place.

“The council is trying to get new employees and they’re asking me how can they when there are no rentals”.

Wellington Shire mayor Garry Stephens said his shire was also experiencing a shortage, which could see locals priced out.

“It is something that needs to be looked at, affordable housing in general,” Mr Stephens said.

“We have seen a large number of people from Melbourne move to this area now that they are able to work from home.

“A health service we have at Yarram is struggling to fill vacancies because it can’t secure rental properties for nurses”.

Alpine Shire mayor John Forsyth said locals who had rented in the area on a long-term basis were getting worried they might not find places when their leases expired.

Meanwhile, in the Wimmera, Mallee and North Central regions, North West Real Estate’s John Hadley said the situation had become “desperate”.

“We have more tenants than houses, and are seeing 10-12 applicants per house,” he said.

He said there was a combination of factors that had resulted in the rental shortage, including reforms to the residential tenancy act.

“There are some good things in it, but it’s very heavily slated to the tenant,” he said.

“I think government legislation has scared a lot of people off and some people are selling their investments because it’s getting too hard.”

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