Rental Emergency: Melbourne Nearing Its All-Time Lowest Vacancy Rate, Reports PropTrack.
- Posted By Ndl 1 Realty
In July, merely 1.41 per cent of potential rental properties in Melbourne were accessible to tenants. This number remained nearly stagnant, hovering at one of its historically lowest levels during the winter season.
Notably, Melbourne's rental vacancy rate experienced the most substantial year-on-year decline nationwide, plummeting by 0.82 percentage points.
Currently, the vacancy rate stands at less than half of the 3 per cent threshold that experts consider indicative of a tightly constrained rental market.
This vacancy rate plays a pivotal role in explaining why the standard house in the city has seen its asking rent surge by $40 (equivalent to 8.7 per cent), reaching a new total of $500 over the past year. Similarly, units in the state's capital have witnessed a remarkable increase of $70 per week compared to a year ago, now costing $2080 per month. This astonishing rise represents a significant surge of 17.1 per cent.
According to the recent data provided by PropTrack, the quantity of accessible rental properties in the city is nearly halved compared to its pre-Covid-19 levels in Australia.
PropTrack's economist, Anne Flaherty, highlighted that tenants are facing limited hope for betterment. This situation arises as the number of homes being introduced to the rental market dwindles simultaneously with a decline in overall housing construction figures, despite a growing population.
“We’re definitely very close to the lowest vacancy rate we have ever seen in Melbourne,” Ms Flaherty.
“And the vacancy rate is likely to remain extremely low for the next 12 months.”
Although Anne Flaherty observed a slight improvement of 0.17 per cent in the vacancy rate of regional Victoria over the past year, reaching 1.3 per cent, it remains the second lowest among regional areas in the country according to PropTrack's most recent rental market analysis released today.
This increase has led to a shift in pricing, with a standard house outside Melbourne now commanding $445 per week, marking an additional $25 compared to a year ago. Similarly, tenants are now paying an extra $20 every week for a unit, bringing the weekly cost to $350.
Notably, only South Australia had a less favourable situation in terms of vacancy rates.