Philip Webb Real Estate’s rental vacancy rate is currently sitting below 1 per cent – the lowest it has been since before the pandemic. As our city continues to recover from two tumultuous years of repeated lockdowns and financial difficulty, we are witnessing a noticeable shift in Melbourne’s rental market.
While it is definitely a positive homes are being leased, a tighter rental market generally leads to more competition and higher rents.
So, what caused this rental shortage?
Two key factors resulted in an exodus of residential rental providers in 2021, leaving Melbourne in a significant rental shortage. Some of the changes made to the Residential Tenancies Act put a financial strain on many rental providers. Others decided to take advantage of last year’s booming sales market and sell up.
Melbourne’s rental shortage has been exacerbated by an increase in movement across the city. Those who moved back home during the pandemic are now on the hunt for somewhere to live. And migration between the states has also resulted in a competitive rental market.
For tenant’s struggling to secure a lease, perhaps you need to expand your search area and adjust expectations. Apartments in the CBD have higher vacancy rates than larger homes in the suburbs at the moment so, there is an opportunity to secure a lease at a reasonable price before international students return and demand for CBD apartments increases, once again.
If you are struggling to secure a rental property or would like advice on applying for a lease, give our office a call today!