Melbourne’s typical advertised rent has reached $600 a week, or $31,200 a year, as tenants face rising costs across the city.
Melbourne tenants are coughing up the price of a new car every year on rent, with costs jumping at least $1000 per annum across 150 suburbs for units and 176 for houses.
PropTrack’s June quarterly rents data shows Melbourne’s typical advertised rent is $600 a week, equivalent to $31,200 a year.
The median annual rent in every one of the 279 Melbourne house markets analysed exceeds the $20,990 regular price of an entry-level MG3 Vibe small car.
RELATED: Vic renovators face hidden $20k hit‘
Bulls**t’: Tears in epic Block tradie disaster
Block losers discover $2m loss on Facebook
Even Melton, the city’s cheapest house rental market, costs $410 a week, or $21,320 a year.
Only two of 219 unit markets fall below the $20,990 benchmark, Melton South at $380 a week and Albion at $400.
It’s little better for the city’s most affordable rental option with the annual rent bill at least $1000 higher in 150 unit markets compared to last June, while the number with a median rent cost of at least $30,000 a year has jumped from 77 to 108.
Melbourne’s $700-a-week unit club has also expanded five-fold from two suburbs to 10.
Glen Waverley and Ashwood are now at $750 a week, matching Brighton, while Southbank and Docklands are at $700.
PropTrack economist Anne Flaherty said Melbourne renters were yet to hit an affordability ceiling, despite cheaper rental options becoming increasingly scarce.
PropTrack economist Anne Flaherty said looking at rent rises in dollar terms exposed the pressure being added to household budgets.
“We often think about things in percentage terms, but when you actually look at the dollar changes, the growth is significantly more, particularly in light of the fact that the cost of everything else has gone up at the same time,” Ms Flaherty said.
“And people’s wages aren’t typically keeping up with that.”
While rental growth had slowed from the pace recorded several years ago, tenants were now starting from a much higher base.
“When we talk about affordable housing, it’s almost becoming non-existent in the market,” Ms Flaherty said.
1/2 Chivers Ave, Glen Waverley, a three-bedroom unit asking for $720 a week.
4/6 Wippa Court, Ashwood, is a three-bedroom unit asking for $700 a week.
She said Melbourne remained tied with Hobart as the cheapest capital city to rent in, despite still being far from affordable, while higher rents elsewhere showed the city had room to rise further.
“The share of properties that you could classify as cheaper, or affordable, has just been steadily shrinking over time,” she said.
Ms Flaherty said population growth had rebounded as construction slowed, while Melbourne had also experienced a period when more investors were selling than buying.
The resulting low vacancy rates were continuing to put upward pressure on rents.
“I don’t think we are heading for an affordability ceiling,” she said.
“We are absolutely headed to even higher rents.”
Ray White Judd White partner David Yang said Glen Waverley’s rental growth had exceeded expectations, with its unit median climbing to $750 a week.
A unit like 2/84 Winfield Road, Balwyn North, will set you back $630 a week.
Ray White Judd White partner and business development manager David Yang said Glen Waverley’s $750 unit median had exceeded his expectations.
The suburb’s median climbed from $675 a week last June, adding $75 a week or $3900 to the annual rent bill.
“Maybe not $750,” Mr Yang said when asked whether he would have predicted the figure a year earlier.
“I would have definitely thought there would have been an increase, but maybe not quite this much.”
Mr Yang said Glen Waverley had long attracted strong renter demand, while newer stock and low-maintenance townhouses were particularly sought after.
“Glen Waverley, there’s always been demand,” he said.
4/16 Wembley Grove, McKinnon, a two-bedroom unit advertised at $625 a week.
Metro Property Management director Leah Calnan said some rental applicants were prepared to spend 40-50 per cent of their income on housing.
Metro Property Management director Leah Calnan said prospective renters were becoming accustomed to weekly prices once considered unusually high.
“Prospective renters have become more accustomed to it,” Ms Calnan said.
She said some applicants were willing to spend 40-50 per cent of their income on rent, although property managers should be wary of approving households facing rental stress.
The squeeze was also changing who applied to live together.
“We’re probably seeing a few more applications with friends,” Ms Calnan said.
“You might see it’s a couple and a friend. You might see that it’s, again, a couple and a relative.”
1204N/889 Collins Street, Docklands: a one-bedroom apartment $650 per week
She said 12-24 months earlier it had been more common to see two-person or couple applications.
Ms Calnan said one-bedroom homes renting in the high $400s about a year ago could now reach $560-$600 in some areas, making sharing a higher-priced two-bedroom property more practical for some tenants.
“But with every higher price that you’re paying for rent, you’re going to compromise on something,” she said.
The suburbs where unit rents have hit $700+
| Suburb | Jun-25 | Jun-26 | Weekly rise | Extra a year |
| Glen Waverley | $675 | $750 | $75 | $3,900 |
| Ashwood | $680 | $750 | $70 | $3,640 |
| McKinnon | $660 | $728 | $68 | $3,536 |
| Black Rock | $650 | $700 | $50 | $2,600 |
| Balwyn North | $680 | $720 | $40 | $2,080 |
| Docklands | $660 | $700 | $40 | $2,080 |
| Brighton East | $700 | $738 | $38 | $1,976 |
| Mount Waverley | $685 | $720 | $35 | $1,820 |
| Brighton | $725 | $750 | $25 | $1,300 |
| Southbank | $680 | $700 | $20 | $1,040 |
Source: PropTrack
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: Melb couple’s ‘nerdy’ trick to save money
Critical error will ruin Block stars