Current Rental Market Trends
Rental Market Snapshot, according to the Real Estate Institute of Victoria (REIV):
- Melbourne’s rental vacancy rate rose slightly to 2.5% as of 31 December 2024, up from 2.3% in December 2023.
- Regional Victoria’s vacancy rate remained stable at 2.1%, showing minimal change over the past year.
- Weekly median rent for houses in Melbourne decreased by $10, settling at $580 per week.
- Weekly median rent for houses in regional Victoria held steady at $480 per week, unchanged since March 2024.
Despite slight fluctuations, Melbourne’s rental market remains highly competitive, with demand continuing to outpace supply. Higher interest rates and land tax changes have impacted market dynamics, yet rental stock remains tight.
Here are two bar charts:
1️⃣ Rental Vacancy Rates (%) – Comparing December 2023 vs. December 2024 for Melbourne and Regional Victoria.
2️⃣ Median Weekly Rent ($) – Showing the rent trends over the same period.
Why Are Vacancy Rates Still Low?
Several factors contribute to Melbourne’s challenging rental market:
✔️ Population Growth – Increased migration and urbanisation drive housing demand.
✔️ Limited Housing Supply – New housing developments struggle to keep pace.
✔️ Economic Conditions – Higher interest rates deter some buyers, keeping more people in the rental market.
✔️ Short-Term Rentals – Platforms like Airbnb reduce the availability of long-term rentals.
Governments and policymakers monitor these trends closely, as low vacancy rates often signal affordability concerns and market imbalances.
Navigating the Tight Rental Market – What Can Renters Do?
If you’re struggling to find a rental, consider these strategies:
🔹 Expand Your Search Area – Nearby suburbs may offer better availability and affordability.
🔹 Set Up Alerts – Use rental platforms to receive instant notifications for new listings.
🔹 Leverage Your Network – Some rental opportunities come through word of mouth before hitting the market.
🔹 Explore Alternative Arrangements – House-sharing or short-term rentals can provide temporary solutions.
🔹 Be Prepared & Act Quickly – Have all required documents ready (ID, income proof, references) to strengthen your application.
Looking for Investment Opportunities?
We hope you enjoyed the information on Melbourne’s Rental Market Snapshot.
At Crest Property Investments, we specialise in sourcing brand-new and off-the-plan properties for buyers across Melbourne and Australia. Whether you’re an investor or looking for your next home, we provide expert guidance through every step—from property selection to settlement.
💡 Want more insights? Check out our Market Insights and YouTube channel for expert analysis and property trends.
📞 Contact us today via www.crestproperty.net.au for a consultation.
📌 Disclaimer: While we ensure the accuracy of this information at the time of publication, market conditions and legislation may change. Contact us for the latest updates.
