[[{“value”:”
More than three quarters of Victorian renters are in extreme rental stress, one property pundit reveals.
More than three quarters of Victorian tenants are in extreme rental pain and the “contagion is spreading”.
Suburbtrends’ April Rental Pain Index scored 386 areas across the state at or above 75 — more than three quarters of the state.
Balwyn in Melbourne’s east was ranked the worst, but was one of four to receive the worst possible rating for tenants at 100.
RELATED: Victorian apartment approvals plunge to 17-year low
Bank balance you need to buy in every Vic suburb
‘Rent disaster’: Vic suburbs where landlords are fleeing
The Index assessed 507 regions across Victoria, attributing areas with a rental pain index score based on lease cost increases, affordability against income and vacancy rates.
Castlemaine, northern Clayton and eastern Mornington joined Balwyn on the worst list.
SuburbTrends ounder Kent Lardner said these regions had massive increases in their typical rents, more than 35 per cent of their average household income was going towards lease commitments and vacancy rates were nearly all under 1 per cent.
Suburbtrends defines rental stress as tenants earmarking more than 30 per cent of their income to pay their lease commitments.
“That’s why these four locations are scoring 100, but that contagion is spreading,” Mr Lardner said.
Mr Lardner said Victoria’s solid pipeline of new builds over the last 15 years was drying up.
At present most tenants in Victoria were not having to spend more than 30 per cent of their income on rent, but Mr Lardner said that wouldn’t last for much longer.
“Victoria on average will tip past the 30 per cent mark in a matter of a month or two at this rate,” he warned.
Mr Lardner added that Victoria’s relatively solid pipeline of new dwellings over the past 15 years had subdued the effects of the tightening rental market more than other states where it had been more acute, like in Queensland and Western Australia.
But he noted the number of new homes hitting the market now was “drying up”, as the Australian Bureau of Statistics data showed the state’s new home approvals remained at concerningly low levels in February with fewer than 3000 new houses given the nod and 159 new apartments ticked off.
Tenants continued to queue up for rentals Melbourne, one property expert revealed.
Belle Property Balwyn head of property management Chris Johnson said while the rental market was tight in Balwyn, it was like that everywhere.
Mr Johnson said he had seen more landlords selling their properties due to changes in compliance and minimum standards imposed by the state government combined with increased land taxes.
“A lot of the land parcels around here are quite large and worth a lot, so that land tax is significant,” he said.
Similarly, Your Home Hunter founder Wendy Eva-Scott said for any rentals that were even “remotely desirable,” she was seeing 20 to 30 groups of tenants lining up at inspections.
“(The state government) needs to make some changes to make it more appealing for investors to own a property because I really think that will create more stock,” she said.
WORST AREAS FOR MELBOURNE RENTERS
Rank – Area – Rental Pain Index
1. Balwyn – 100
2. Clayton – 100
3. Mornington – 100
4. Burwood East – 99
5. Sandringham – 98
6. Beaumaris – 98
7. Doncaster East – 98
8. Templestowe – 98
9. Keyborough – 98
10. Doveton – 97
WORST AREAS FOR REGIONAL VICTORIA RENTERS
Rank – Area – Rental Pain Index
1. Castlemaine – 100
2. Bairnsdale – 99
3. Warrnambool – 96
4. Maryborough (Ballarat) – 95
5. Loddon (Bendigo) – 95
6. California Gully (Bendigo) – 95
7. Wodonga – 94
8. Numurkah (Shepparton) – 94
9. Creswick (Ballarat) – 94
10. Alexandra – 94
Source: Suburbtrends
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Ex-Underbelly star re-leases Melb home, extends Euro stay
Lambo guy could sell Block house for just $1
25yo’s tips to build a nest egg after two-year home search
The post Melbourne rent crisis: More than three quarters of Victorian tenants are in extreme rental stress | Suburbtrends appeared first on realestate.com.au.
“}]]
