A new analysis of rental vacancies rates in regional Victoria shows tenants living in regional areas across the state are most vulnerable to rent increases, as landlords look to recoup the cost of rising interest rates. Everybody’s ³Ô¹ÏÍøÕ¾ – the national campaign for real housing solutions – has analysed and ranked rental data from SQM. The five regions impacted most by the state’s rental crisis show rental vacancy rates well below 1% at the same time rents have increased between 6 – 14 per cent.
Community | Rental Properties | Vacancy Rate | Annual increase | Asking rent | Vaccant rental properties |
North East Victoria | 40514 | 0.47% | 11.9% | 396 | 189 |
South Western Victoria | 2046 | 0.69% | 16% | 490 | 140 |
Northern Victoria | 40636 | 0.72% | 6.2% | 409 | 293 |
Gippsland | 37161 | 0.78% | 12.3% | 404 | 291 |
Mornington Peninsula | 40451 | 0.95% | 14.2% | $510 | 382 |
Everybody’s ³Ô¹ÏÍøÕ¾ spokesperson, Kate Colvin, said as mortgage interest rates doubled many landlords would seek to pass the cost on to tenants. “Renters are in for a seriously difficult time as landlords capitalize on historically low vacancy rates to shift the rising cost of interest rates on to their tenants. “
“While the Victorian state government has invested in social housing, we will only start to see significant change once we see a significant promise from the Federal Government as well.” “After a decade of inaction on social and affordable housing from the previous Commonwealth Government we really are in a perfect storm. There are limited options for people who can’t afford to buy but want to stay in their local community. “Just because you rent, doesn’t mean you haven’t established deep roots in a community. Renters on low and modest incomes work in the local shops and aged care services. They have kids in local schools, are members of sports clubs, and attend local churches. They deserve the same stability as everyone else. “We need to start planning for more social and affordable houses now. A dip in construction starts is forecast for next year, and that’s a great opportunity for Government to swing in and take up the slack in the industry. “The bitter fruit of a decade of housing neglect is with us now and is being unfairly forced on low income renters. This problem will only get worse if we fail to act.”
