Market researcher Suburbtrends recently released their April Rental Pain Index report based on March 2024 data. It highlights the tough – and worsening – market conditions facing tenants today.
From the shortage of available rental properties and escalating rents, Victorian tenants are in extreme pain.
The Index showed 386 locations across Victoria where the rental pain index (based on rental cost increases, affordability in relation to income and vacancy rates) was rated at 75 or above, where the worst possible score is 100.
The worst-ranked locations saw renters paying up to 35% of their income in rent. With no relief in sight, Suburbtrends founder Kent Lardner predicts that on average Victorian tenants will be attributing 30% of their income to rent within a month or two.
The report identified the following areas as causing the most pain for Melbourne tenants:
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
Recent changes imposed by the Victorian government to rental compliance laws, increased land taxes and rental standards have seen landlords selling in droves, contributing to the rental property shortage and skyrocketing rental prices.
Industry experts are urging the government to make changes that will entice investors back into the market, increase the supply and alleviate the pain.
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By Wendy Chamberlain
Copyright 2024 | All Rights Reserved
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With a passion for all things real estate spanning 20 years, Wendy loves that her role as a Buyers and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.