The latest data from the Homes Victoria June Quarter 2024 Rental Report reveals a sharp increase in rental prices across the state. Median rent in metropolitan Melbourne decreased slightly by $10 in the last quarter, bringing it to $550 per week, yet still reflects an annual rise of 10.9%.
Meanwhile, regional Victoria saw an increase of $10 in the same period, with median rent reaching $450 per week, a 6% annual increase.
The Metropolitan Rent Index (MRI) increased by 0.8% over the June quarter, significantly lower than the 4.6% jump in the previous quarter. Over the past year, the MRI grew by 10.9%, lower than the 15.7% rise in the year to June 2023, yet still well above the long-term annual average increase of 4%.
Regional Victoria’s Rent Index (RRI) rose by 1.2% in the June quarter, and by 6% over the past year—higher than last year’s 5.4% annual increase, indicating a continued rise in demand outside the metropolitan areas.
Investors are reaping the benefits, but these figures highlight the growing housing affordability crisis in the state. With median rents increasing steadily across both urban and regional areas, the strain on renters is intensifying.
With rents rising by double-digits, the Victorian Department of Families, Fairness and Housing’s Rental Report, said housing pressure in Victoria is high.
Council to Homeless Persons (CHP) has called on the state government to take urgent action in response to the crisis, citing the latest data as a clear signal that more needs to be done.
CHP Acting Chief Executive Officer Tom Johnson expressed deep concern about the rapid pace of rent increases.
“Rents are increasing at breakneck pace, pushing more people to the brink of homelessness,” he said, noting that renters cannot keep up with the rising costs, which are outpacing inflation and wage growth.
“While the quarterly increase was lower, this comes after years of massive increases far outpacing inflation and wage growth.”
CHP is advocating for the Victorian Government to commit to building at least 6,000 new public and community homes each year for the next decade to address the growing crisis.
According to Mr Johnson, many at-risk renters are falling through the cracks of the support system due to soaring demand, leaving them vulnerable to homelessness. “People once considered to have stable incomes are now being pushed to the precipice of homelessness,” he noted.
As housing affordability becomes an ever more pressing issue, the Victorian Government’s Renter Services Review discussion paper, released last week, acknowledges the growing demand for renter services. It points out that economic challenges are pushing more people, even those with previously stable incomes, into situations where they require support.
The report calls for a comprehensive approach to tackle these issues, advocating for greater government engagement in building affordable housing and expanding support for renters in financial distress.
