The stats are in for which Melbourne suburbs are the hardest to find a rental in, as Australia continues to suffer a rental crisis.
Rentals in the city are reaching crisis point with the fewest rentals available in Heathmont in the Melbourne’s east, according to data released by InvestorKit.
Hardest Melbourne Suburbs To Rent
- Heathmont
- Mulgrave
- Mooroolbark
- Rosanna
- Croydon North
- MacLeod
- Oakleigh South
- Scoresby
- Oak Park
- Gladstone Park
It comes as Australia has hit a record low vacancy rate of just 0.9 per cent. As a result, rents are skyrocketing and share house popularity is exploding as people seek more affordable ways to live.
Founder and head of research Arjun Paliwal said in a media release that Victoria’s “investor-bashing policies” were scaring property investors away, leading to less available rental homes and higher competition among renters.
“Investors are realising the money they’re getting isn’t covering their repayments and capital growth has started to slow down, so they’re getting out of the market and most of those properties are going to owner-occupiers instead of renters,” he said.
However, speaking to PEDESTRIAN.TV, New South Wales Renters Union CEO Leo Patterson Ross said investing in Australia was already incredibly easy, and loosening rules would not help to the ease the crisis.
“We’ve got policies in place that cover rental losses ahead of time,” he said.
“We give away incentives without asking for anything in return. Fundamentally we need to change the approach of investing.
“Investors have got to realise that this is an essential service, in the same we we don’t invest in energy or water with the idea that profits will override an essential service.”
He said banks sought a fast turnover of houses and people expected profits in just a few years, however they needed to be encouraged to hold onto investment properties for more time.
Patterson Ross also suggested increasing housing supply was only part of the solution.
“We need a range of strategies, yes we need to build in cities and suburbs well supported by public transport, but that is just part of responding to the population’s needs.
“What will inevitably happen if we focus on supply alone is prices will drop and it will change the attractiveness to developers and individual investors.”
Patterson Ross said there needed to be a regulatory response that made renting a more stable, long-term option, saying many people were forced into homeownership.
He said if the rental system was designed to be more attractive, more people would choose to remain renters and housing market pressure would ease.
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