Melbourne to Become the Cheapest Major City to Rent
Major cities are typically known for being very expensive especially in terms of renting or owning property. It is also why these cities have the highest rate of homelessness because people are just finding it difficult to afford rent let alone purchase their own house. However, according to the latest data, Melbourne, one of the nation’s major cities, is on track to becoming the cheapest capital city in Australia to rent property this year. The apartment rental market recorded the biggest annual fall with a 2.3 percent fall from a year ago.
According to the latest data record from the Domain report released for the March quarter, Melbourne’s median house rent is now at $430 which is now equal to Perth and a little bit ahead of Adelaide. There has been a massive fall of 12.8 and is lower than three months ago. The rent tenants are currently paying right now is actually the same as the rent paid six years ago per unit for a median price of $375 a week. Inner Melbourne house rents also fell by 9.2 percent.
So why is this happening?
The main reason for this was the pandemic. Melbourne, the second-largest city in Australia was hit very hard by the pandemic caused by the COVID-19 virus. To prevent the virus from spreading further, international border closures had to be implemented. Because of this, international students, migrants overseas, and interstate were not allowed to enter the state so it really affected the rental market, which the state very much relies on.
Experts are predicting that tightening rental conditions in Adelaide and Perth could increase rents in these two states in the next several months – this alone could potentially make Melbourne the city with the most affordable rental properties.
Not all Australian regions experienced falls in rent. Other suburbs recorded stable prices and some recorded rent increases because of the number of individuals wanting to find their own personal space, especially after the lockdowns due to the virus.
With the economy starting to recover, and everything is starting to go back to normal including traveling from one place to another, people are actively looking for rental homes. Cheaper rents will obviously appeal to more individuals so the likelihood of states with more affordable rent really boom in terms of people renting.
Financial stress is just one of the dangers of going through such difficult circumstances, especially as a result of last year’s pandemic. We are in a hopeful, but a tricky situation. But looks like Melbourne is going to enjoy the perks of an active rental market.