The residential rental vacancy rate in Melbourne is currently 2.4 per cent, confirming that the city has moved from having a shortage of rental homes to a more balanced market.
REIV CEO Enzo Raimondo said that, while the easing in the rental vacancy rate would be welcomed by Melbourne renters, the availability of rental homes in regional Victoria remained very low.
“The February rental vacancy rate in Melbourne of 2.4 per cent indicates a greater availability of rental homes than is the case in regional Victoria, where the vacancy rate is a mere 1.4 per cent.
“A vacancy rate of 3 per cent represents a balanced market where renters are generally able to find a home and investors receive a decent return.
“Within Melbourne there is a clear trend of higher vacancies the closer to the suburb is to the CBD.
“In the suburbs within 4km of the CBD the vacancy rate is 2.7 per cent, the same as in December.
“Within the suburbs between 4km and 10km of the CBD the vacancy rate is 2.6 per cent compared to 2.1 per cent in December. The middle suburbs have recorded a substantial easing from 1.2 to 2.2 per cent. Vacancies in the outer suburbs have tightened from 2.1 to 1.6 per cent.
“It is unfortunate that, while the overall level of vacancies is increasing, the level of affordable rental homes remains drastically low.
“Within the main regional Victorian cities the highest level of vacancies is in the Geelong region, where 2.3 per cent of rental homes are vacant.
“In the Ballarat region the vacancy rate is a low one per cent and Bendigo continues to be one of the most difficult places to find a rental home in Victoria, with a vacancy rate of 0.6 per cent,” Mr Raimondo concluded.
The REIV March rental vacancy rates will be released in the last week of March.