News & Insights
Melbourne tenants are being squeezed as median house rents rise to a record $460 per week, and unit rents are on track to set a record by spring.
House rents jumped $10 per week or 2.2 per cent over the June quarter, the latest Domain Rent Report, released on Thursday showed. Unit rents rose 5.1 per cent or $20 per week to $410 a week, just below their pre-COVID highs.
The increases are a blow to tenants struggling with the rising cost of living, large winter energy bills, high petrol prices and grocery price inflation, with little respite in sight.
Domain chief of research and economics Dr Nicola Powell said Melbourne’s market had changed from one where tenants had a choice of rentals and could negotiate on price to one where landlords were far more in control.
“It’s definitely become a landlord’s market,” Powell said. “This is the second-steepest quarterly rise on record and resulted in the sharpest annual increase since 2008 … if rents keep rising at the current pace, by next quarter we will have unit rents at a new record high overall.”