According to the REIV’s most recent data on the rental market, the availability of rental homes has contracted slightly in the three months ending in July.
A vacancy rate of 1.9 per cent was recorded across metropolitan Melbourne, with the lowest level of vacant rental homes being found in the outer suburbs, where a rate of one per cent was recorded.
The highest vacancy rate in the metropolitan area was recorded in the suburbs within 4km of the CBD, where 2.3 per cent of rental homes managed by a real estate agent were vacant.
The middle suburbs had a vacancy rate of two per cent, which is tighter than earlier in the year.
Overall vacancy rates are slightly lower than a year ago. At the same time, many REIV Members are reporting less competition for vacant homes than was the case a few years ago. This is confirmed by information that shows median rents have shown little overall growth in the last quarter.
The REIV’s vacancy rate data is very broad: it segments the city into four areas based on radial distance from the CBD. As a result, some segments of the market may differ; this is particularly the case with the affordable segment, where demand clearly outstrips supply.
In regional Victoria vacancy rates remain tight in Bendigo (1 per cent) and in Ballarat (1.9 per cent) but high in Geelong, where a rate of 4.7 per cent was recorded.
More broadly, in regional Victoria a higher vacancy rate is recorded than in metropolitan Melbourne, a situation opposite to that reported a year ago.