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.
Chat to us about how a property advocate can help you sell or buy in the current market with confidence. Investment buyers can receive invaluable support and guidance through our Buyers Advocacy Service, and for landlords who are selling, our Vendor Advocacy Service helps vendors achieve outstanding results.
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