Rental prices continue to grow in Victoria following another month of low vacancy rates. 

The monthly rental data from the REIV shows median rental house prices have shot up across Melbourne by $10, with units climbing also by $10 since October 2018, following a
vacancy rate of 2.2 per cent for Melbourne last month. 

REIV President Leah Calnan said a lack of housing has led to renters paying a premium. 

At a glance:

• Rental houses up by $10 across Melbourne
• Vacancy rate of 2.2 per cent for Melbourne last month
• Many sellers are keeping their houses off the market leading a surge in house demand

“There is an urgent need for more rental accommodation across Victoria,” said Ms Calnan. 

“Healthy vacancy rates should be around 4 per cent; most of the state is sitting at 1 or 2 per cent, increasing demand has led to rental price climbing. 

“With changes to the Residential Tenancy Act coming in next year; landlords remain confused and cautious about losing control over their investment.”  

Ms Calnan said their members have reported to them that many homes have been sold or are being kept off the market, leading to a surge in housing demand.

"With competition for housing at a high, many families are struggling to put a roof over their heads, which puts a lot of pressure on local welfare groups," said Ms Calnan. 

“The State Government needs to do more to work with landlords and encourage them to rent out their investment homes. 

“New rental homes are being leased out in record time, therefore more owners should be encouraged to put their property on the rental market. 

“With rising rents and increased demand, now is a great time to rent out your investment property.”

Ms Calnan told WILLIAMS MEDIA that Mount Eliza at $673 a week is the most expensive suburb to rent a house in outer Melbourne, closely followed by Warranwood at $620 a week and Patterson Lakes for $600. 

mount_eliza_1.jpg

1/2 Manatee Avenue, Mount Eliza is for rent for $690 per week, just above the average for rentals in the area. Photo: The Home Page

“The most affordable suburbs for a rental home include Doveton and Melton in Melbourne’s outer west which both go for $320 a week on average and Frankston North on the Peninsula at $330 a week," said Ms Calnan.

“The priciest place to rent a unit in Melbourne’s outer suburbs include Diamond Creek and Mulgrave both costing $495 per week on average, and Mt Martha right behind them at $475 a week. 

“If your looking for an affordable unit in outer Melbourne, the cheapest weekly rents include Melton South at $270 a week and Dandenong and Werribee at $310.”

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