Regional Victorian renters move more often than their Melbourne counterparts

Regional Victorian renters move more often than their Melbourne counterparts
Enzo RaimondoDecember 8, 2020

According to data produced by the Victorian government, renters in regional areas of the state move more frequently than those in the metropolitan area.

In Melbourne the average tenancy duration in the December quarter last year was 25.9 months – i.e. just over two years. In regional Victoria the comparative number was a shorter 22.7 months – just under two years.

These numbers are skewed by some very-long-term tenancies, as the median – the middle value – is much lower.

In Melbourne the median tenancy duration was a short 17 months. In regional Victoria it was 15 months.

The data also shows that, as would be expected, the smaller the dwelling, the shorter the tenancy. In both the metropolitan and regional areas one bedroom homes have the shortest median tenancy of just 14 months. This is a very popular form of rental home. Census data from 2006 shows that there are proportionally fewer small flats or units being occupied by their owners – the majority are rented.

Interestingly, the largest homes, those with four or more bedrooms have a shorter tenancy – 16 months – compared with 18 for both two- and three bedrooms. This will be, in part, because two- and three-bedroom houses and units make up the majority of rented housing.

The average duration of tenancy is certainly lower than it is for owner-occupied housing and that is one of the advantages for people who prefer to rent than buy. If an owner-occupier sought to sell and move every two years they would find their equity was eroded by the stamp duty incurred each time.

Enzo Raimondo is CEO of the Real Estate Institute of Victoria.

Enzo Raimondo

Enzo Raimondo is CEO of the Real Estate Institute of Victoria.

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