In September 2021, Domain Rent Report did a survey in Australia on the effects of COVID-19 lockdowns on the rental market, which revealed that the cost of renting a house in Melbourne remained stagnant throughout the lockdown. While the cost of renting houses in other parts of Australia continued to go up, the cost of homes for rent in Melbourne didn’t change. The survey also concluded that Melbourne is currently the cheapest capital city in Australia to rent a house.
So, if you’re looking for a cheap house to rent in Australia, Melbourne is a great option for you. Before you set out to find a nice rental house in this city that is within your budget, though, you should learn a few critical tips to rent a house in Melbourne. For instance, you must ensure that you have the qualities that make a good tenant.
You must also be aware of the median house rent in Melbourne so that you can choose a home that suits your budget. Although rental properties in Melbourne are generally cheap compared to other parts of Australia, it doesn’t mean there aren’t affluent properties in this city that go for higher prices. So, knowing how much an average rental house in Melbourne will cost you is important when you are reviewing the available options.
What Do Rental Homes Cost in Melbourne?
Melbourne is considered to be Australia’s garden city, thanks to its artistic scenery. For many years, the city has exhibited a special appreciation of art, with spectacular structures erected at every corner of the city. The marvellous scenery makes Melbourne the preferred destination for people looking for a beautiful place to settle in Australia, which is why the city was previously considered to be one of the most expensive cities in the country.
Today, renting a house in Melbourne doesn’t cost more than it would in other less popular cities like Hobart. As reported by Domain Rent Report, rental trends in Melbourne were negatively affected by the COVID-19 pandemic, especially in the inner-city areas that were hit hard by the lockdowns. These areas recorded a significant drop in the number of tourists and international students during lockdowns.
They also experienced a massive exodus of tenants deserting the highly-populated area for more spacious properties in the suburban areas–these trends had a direct effect on the average rent in the entire city. According to Domain Rent Report, the current average rent in Melbourne per week is $440 for houses and $400 for units, indicating a slight increase of 2.3% for houses and a significant drop of 3.6% for units.
Past Rental Trends in Melbourne
In 2017, the city recorded a steady rise in investor activities, which led to an inconsequential growth in rental prices over the last two decades. The rental prices for units increased by 13.5% while those of detached houses rose by 11.6%. Nevertheless, there was only passive growth during this period; immediately after the initial reports of the COVID-19 pandemic, rental prices in Melbourne indicated a sorrier story as the average rent for units dropped to its lowest in three years, while that of detached houses remained stagnant.
Today, the house median rent in Melbourne is showing a marginal increase, which restores some hope in the city’s rental market tendencies. Melbourne’s rental market has remained resilient throughout the difficult period, thanks to the numerous efforts made by the government to support the economy. The average rent for detached houses in the city has started to grow, largely due to the rising need of tenants to move to large spaces and less populated areas to avoid the risk of contracting COVID-19.
The falling demand for units in Melbourne has enabled the median rental price for apartments to bounce back to 2017 levels. More tenants in the city have abandoned vertical living since the onset of the pandemic, and the number of international students who prefer to rent apartments in the city has gone down due to immigration restrictions. However, Domain Rent Report insists that the current low rental prices in Melbourne may not last for long, as the rising cost of buying properties in the city is slowly forcing more people to move to rentals.
Don’t let unstable rental price trends worry you–Soho’s got you covered with the best possible rentals in Melbourne to fit your budget. Browse our site today and find your perfect rental home or apartment unit!
