Melbourne renters who signed on to reduced city rents at the height of the pandemic are now being forced out of the CBD and inner suburbs, with some reporting rental increases of more than 30 per cent.
People who normally may not have been able to afford to live in the CBD, Docklands or Southbank were able to secure rental apartments during 2020 and 2021 with significantly cheaper rent.
But some of those with expiring leases have been left scrambling to find new homes as the inner-city rental market rebounds to pre-pandemic prices.
Lee Davis-Thalbourne and his partner Erin Kyan managed to secure a two-bedroom apartment in Docklands last year for $450 a week.
Their apartment was in a highly accessible modern building, which was great for Erin, who needs to use a wheelchair.
Having previously struggled up the stairs in their old rental, Erin said living somewhere accessible made a huge difference to his health.
"I think the first month that we lived in the new place, I realised that I just wasn't in as much pain and I did not need as much physiotherapy," he said.
"It was much better for my freedom. I didn't need someone to take me out.
"I didn't need my partner to help me leave the house."
As their 12-month lease came to an end, they were told their rent would be increasing by $140 a week to $590, which is an increase of 31 per cent.
Knowing that they had got a good deal when they moved in, they had been expecting an increase. But they had not expected it to be so high.
While there are rules around rent increases in Victoria, there is no strict cap as long as it is in line with the market rate and introduced with notice at the end of a lease.
"I remember we were just looking at it in shock," Lee said.
"It would have meant we'd have to give up on the idea of ever having a house of our own.
"If we stayed, we were basically saying, 'that's it landlords, you win'."
The couple has just moved into a new place in St Kilda.
City rent falls introduced new demographic of renters
During the peak of the pandemic, thousands of inner-city vacancies drove competitive prices for renters.
Data from REA group shows at its lowest point, median weekly rent dropped by 32 per cent on pre-pandemic levels in the CBD, 28 per cent in Docklands and 27 per cent in Southbank.
"Even people who had just a JobSeeker income could afford to rent a property on their own in the city," Rachel Evans, who co-ordinates the private rental assistance program with Launch Housing, said.
That was the case for Ann, who requested her real name not be used.
She has been unable to work while undergoing cancer treatment and moved into a one-bedroom apartment in the city last year for $290 a week.
"It was affordable and close to the hospital and shops and everything," she said.
But she found out her landlord would be putting her rent up to $400 per week, a 38-per-cent increase.
She had also expected her rent to increase, but not by that much.
"I was shocked … there's no way I can afford that," she said.
It took four months for Ann to find a new place in Melbourne's northern suburbs, which she was able to do with the support of Launch Housing.
"I didn't know I was moving. I didn't have time to plan. So I didn't have rent up-front. I didn't have bond to pay for these things.
"It was hugely stressful and takes a big toll on your mental health."
Rising demand as international and interstate residents return
Rental director at Lucas Real Estate in Docklands Dylan Emmett said even he was surprised by the increased demand for city rentals during winter, which is typically slow.
"And as of right now, our rents are in some cases, the same as what they were before COVID," he said.
"And in most cases not far off it."
He said many international residents were returning, as were people who left for regional or interstate areas.
And he said landlords were having to grapple with increasing interest rate rises on top of the reduced rents during COVID.
"Although the rents are what they were, their costs are higher as well," he said.
Housing advocates said it was a difficult time for anyone looking for a rental, with Launch Housing's private rental assistance program supporting hundreds of people who were trying to maintain or establish a tenancy.
"People might be having to apply for 100 properties before they're actually accepted for something," Ms Evans said.
"In the meantime, they're falling into rent arrears, because they can't keep up with their with their rent at their current property.
"The reason this is happening is there is a lack of affordable rentals."
