Melbourne is experiencing the most rapid growth in rental prices among all capital cities in Australia, primarily affecting affordable housing. The average cost of renting a unit has increased by $20 (4.4%) per week in the past three months, reaching $470 per week. Rental prices for houses have also risen, reaching $495 per week. This steep increase is eroding Melbourne's reputation as an affordable city to rent a home, with prices rising twice as fast as the national average. Experts are calling for government collaboration with industry organizations to address the growing affordability crisis and incentivize landlords to offer more rental properties.
Melbourne is currently witnessing the most rapid growth in rental prices among all capital cities in Australia. The sky rocketing prices appear to be affecting affordable housing the most. This concerning trend is expected to worsen as the leading real estate advocacy group in the state warns that landlords may exit the market in large numbers.
Recent data from PropTrack reveals that the average cost of renting a typical unit in Melbourne reached $470 per week by the end of June, marking a $20 (4.4 percent) weekly increase over the past three months.
What is particularly alarming is that just a year ago, the median rental cost for a unit in Melbourne was only $400, and now it is rapidly approaching the typical rental price of a house in the city, which stands at $495 per week. Over the past three months, house rental prices have risen by approximately $15 (3.1 percent), and over the past year, they have increased by $35.
This steep rise in rental costs is eroding Melbourne's reputation as the most affordable capital city in Australia to rent a home, as prices are increasing twice as fast as the national average. Experts are urging the government to collaborate with industry organizations to explore measures that would incentivize landlords to make more properties available for renters, addressing the growing affordability crisis in the city.
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