News Corp Australia Network

Rents have skyrocketed across Melbourne in the past 12 months, with the weekly impost rising almost $100.

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Melbourne’s weekly rental prices soared nearly $100 in 2023 as tenants faced growing pressure to find and keep a roof over their heads.

New data from PropTrack revealed that the region’s median rental price increased from $465 a week in December 2022 to $550 as of December 2023.

Weekly rent commitments for houses rose from $480 to $550 a week and from $450 to $520 a week for units in the last year.

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However, median rent prices remained unchanged from the previous quarter which could signal some reprieve for tenants.

It comes as the state government’s land tax changes take effect this month with up to 380,000 Victorian property owners becoming liable for taxes they’ve never had to pay before.

PropTrack economist Angus Moore said while Melbourne experienced some respite from rising rental prices in the quarter leading up to December, the market remained “really, really tight” and availability for rentals was “really low”.

“Rental markets are still very, very tight across the country, certainly in Melbourne as well; we’re seeing rental vacancy rates of 1.2 per cent,” Mr Moore said.

“In that environment, it’s hard to find a rental and you’re going to see competition for rentals, which is part of why we’re seeing prices grow as quickly as they are.”

The two-bedroom home at 355 High St, Prahran, is for rent for $875 a week.

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The home was last listed for rent in October 2022 for $775 a week.

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Mr Moore said the areas where rental prices had risen the most were in Melbourne’s inner-eastern and southeastern suburbs, but increases had been “pretty strong” across the city.

“I think we’re still going to continue to see pressure on rents for at least the near term,” he said.

Rental Search Australia co-founder Jade Costello said they’d never seen so much competition for homes among tenants throughout their eight years as a rental search company.

“It’s not unusual to see upwards of 12 to 15 (people applying) for the same property now,” Ms Costello said.

“What we’re seeing is people offering over the advertised asking price, so I think that’s probably what’s driven (rent prices) up.”

The four-bedroom home at 31 Lawrence Dr, Berwick, is for rent for $680 a week.

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The home was last listed for rent in June 2022 for $600 a week.

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With increased land taxes coming into effect this month, Ms Costello said landlords would simply pass on those extra costs to tenants by advertising their properties at a higher price.

“We’ll definitely see property just going up with a higher price to see if tenants will help cover that for them. And I think given the competition, I think they will,” she said.

“Say a property used to be around the $400 a week mark. It could be quite easily put on at $450 per week as (landlords and agents) know that there’s still going to be people looking in that price bracket because there’s not the stock out there.”

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sarah.petty@news.com.au