- Rents could rise by $64 per week in Melbourne
- Calls continue for more affordable and social housing
- Housing crisis impacts political landscape
If rents rise in line with forecasts, tenants could be slugged an extra $3,800 per year according to new analysis.
The numbers comes as a two-day conference by Community Housing Industry Association Victoria (CHIA) is held to address housing demand in Victoria. The figures show that should an expected 11.5% increase in rents occur this year, figures from St George as cited by CHIA, then renters will be an extra $64 worse off each week.
Melburnian rents are currently on a steep incline, with house rental rates above $660 per week and units above $510 per week, according to SQM Research.
Weekly asking rents, Melbourne
SQM figures show the rolling quarterly change for house rentals is up 7.8% and 21% over 12 months, with units seeing a rolling quarterly change of +10.2% and 12 monthly change of 25.7%.
Since the peak of the pandemic, rental stock across Melbourne has quickly dropped to levels lower than pre-pandemic patterns.
It comes as little surprise then that vacancy rates have also hit record lows, with the data from SQM showing 1.1%, Domain showing 0.8%, and REIV showing 2.2%.
Calls for more social housing
Acting chief executive, Jason Perdriau, said there is increasing pressure to build more social and affordable housing.
“More and more Victorians are finding themselves in housing stress, unable to pay the unsustainable rises in rent,” Perdriau said.
“The Big Housing Build has and will continue to be life-changing for many Victorians but funding is drying up. The Victorian Government can continue the momentum of this historic investment by investing $6 billion in a Social Housing Investment Fund to deliver 20,000 social homes over the next decade.”
Rents impact the political landscape
Speaking at the conference is one of Australia’s most insightful pollsters, Kos Samaras, who will speak to some analysis regarding the relationship between politics and Victoria’s housing crisis.
“Housing is one of the top issues affecting Victorians and it’s fuelling political realignments, particularly among millennials who are increasingly dominating electorates and using their votes tactically by abandoning major parties,” Samaras said.
“Rental and mortgage stress and the financial uncertainty regarding interest rates are contributing to a febrile political environment.
“The government’s housing agenda should focus on increasing social and affordable housing to address the crisis unfolding.”
