COVID-19: Melbourne rental affordability at eight-year excessive

- Advertisement -
- Advertisement -

Settling for the highlife

Melbourne is the nation’s second most-affordable capital for tenants. Image: Tony Gough


The pandemic has considerably improved rental affordability in Melbourne as a complete — however new analysis exhibits this has not utilized equally throughout the town, with low-income earners nonetheless going through “extreme to excessive rental stress”.

Town’s Rental Affordability Index has jumped 8.9 per cent yearly to 140 — the best rating achieved in eight years — to make it the nation’s second most-affordable capital for tenants behind Perth.

Lease was consuming up 22 per cent of the common family earnings in higher Melbourne within the June quarter, in response to the report by Nationwide Shelter, Group Sector Banking, Brotherhood of St Laurence and SGS Economics & Planning.

RELATED: Melbourne vacancy rates: Vacant rentals on rise in inner suburbs

COVID-19: Renters accessing super, skipping meals to make ends meet

Regional Victorian rents have largest jumps, led by Benalla

Red For Rent Real Estate Sign in Front House

There are good alternatives for Melbourne tenants in some sections of the market.


Affordability has declined in some suburbs, together with Springvale. No. 3/38-40 Kemp Road is accessible for $495 per week.


It deemed this an “acceptable” stage, coming in nicely under 30 per cent the place rental stress kicked in, and famous the “stark” enchancment “has virtually totally been pushed by the decline in rents … brought on by the onset of the COVID-19 pandemic”.

However the analysis additionally discovered the elevated affordability had “not been even” throughout Victoria’s capital.

Melbourne’s inside metropolis, inside northeast and tertiary schooling precincts had skilled the largest enchancment, with the CBD, West Melbourne, Southbank, South Yarra, Carlton, Alphington and Ivanhoe shifting from “unaffordable” or “reasonably unaffordable” to “acceptable”.

This sample was additionally evident in Hawthorn, Malvern and Glen Iris.

However affordability had deteriorated additional within the middle- to outer-northeast hall, in suburbs like Kew East, Balwyn North, Eltham South and Warrandyte, in addition to in Airport West, Keilor Park, Ringwood, Springvale, and Elsternwick.

Brighton East was recognized as Melbourne’s least inexpensive suburb for tenants, with 36 per cent of the common family earnings going to hire.

Brighton East is the town’s least inexpensive suburb for leases. No. 31 Clinton Road is marketed for lease at $1100 per week.


Affordability has additionally slipped in Airport West. No. 1/88 Hawker Road is up for grabs at $400 per week.


It was adopted by Brighton, Albert Park and Center Park (all 34 per cent), Balwyn North (32 per cent) and Hampton (30 per cent).

The report said the “collapse of worldwide tourism and scholar demand” had triggered rents to plunge for one-bedroom and two-bedroom properties.

However this had been “negligible” for low-income Melburnians, a lot of whom remained in rental stress.

Single-pension households have been nonetheless required to shell out 65 per cent of their earnings on hire in higher Melbourne, deemed an “extraordinarily unaffordable” stage.

Lease remained “severely unaffordable” for a single individual on JobSeeker (56 per cent), a pensioner couple (45 per cent) and a single part-time employee guardian on advantages (40 per cent), and “unaffordable” for a full-time hospitality employee (31 per cent).

Nationwide Shelter government officer Adrian Pisarski stated regardless of the COVID-enhanced JobSeeker being “a fine addition to many low-income renters”, it was “not sufficient to carry them out of rental stress”.

Melbourne City Skyline

Folks transferring to Melbourne have a raft of rental choices.


“This exhibits the depth of our rental affordability drawback, the place even with further help, there’s not one place in Australia the place a JobSeeker recipient can hire affordably,” he stated.

Mr Pisarski praised Victoria’s $5.3bn price range dedication to construct create 12,000 social and inexpensive properties over 4 years, calling on the federal and different state governments to spice up this by becoming a member of forces in a “actually nationwide effort”.

Brotherhood of St Laurence director of analysis and coverage Shelley Mallett added the September discount to JobSeeker, and future deliberate cuts, would additional improve rental stress amongst low-income earners.

MORE: BuildHer Collective: Bentleigh California bungalow before and after

Home Goals with Bianca Chatfield: Getting finance ready for a loan

Rod and Andrea Sylvia: Champion bodybuilders list ‘magical’ Mildura home

samantha.landy@news.com.au

- Advertisement -

Latest news

- Advertisement -

The right way to handle your property supervisor

Far too many novice buyers falsely imagine that their property managers are fully answerable for their funding properties. They undertake a “set and neglect” mindset...

Drew Petrie’s property journey – realestate.com.au

Drew Petrie’s footy journey led him to WA, the place he’s staying put. Picture: Adam Trafford/AFL Media/Getty Pictures Drew Petrie is a former AFL footballer...

5 Steps to Change Your Life Now – Mark Creedon

I’m not one to imagine in fast fixes or in a single day successes. In actual fact I believe arduous work, wholesome habits and a robust...

Related news

The right way to handle your property supervisor

Far too many novice buyers falsely imagine that their property managers are fully answerable for their funding properties. They undertake a “set and neglect” mindset...

Drew Petrie’s property journey – realestate.com.au

Drew Petrie’s footy journey led him to WA, the place he’s staying put. Picture: Adam Trafford/AFL Media/Getty Pictures Drew Petrie is a former AFL footballer...

5 Steps to Change Your Life Now – Mark Creedon

I’m not one to imagine in fast fixes or in a single day successes. In actual fact I believe arduous work, wholesome habits and a robust...
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here