REIV says Victoria's vacancy rates are far from "healthy"

Rental prices continue to grow in Victoria as the cycle of low vacancy rates continues.

The monthly rental data from the REIV shows median rental house prices have shot up across Melbourne by $10, with units climbing also by $10 since October 2019.

This follows a vacancy rate of 2.2% for Melbourne last month.

REIV President Leah Calnan said a lack of housing has led to renters paying a premium.

Ms Calnan said, “healthy vacancy rates should be around 4%; most of the state is sitting at 1 or 2%, increasing demand has led to rental price climbing.”

With changes to the Residential Tenancy Act coming in next year; landlords remain confused and cautious about losing control over their investment, she warned. 

“Our members have reported to us that many homes have been sold or are being kept off the market, leading to a surge in housing demand.”

“The State Government needs to do more to work with landlords and encourage them to rent out their investment homes.”

“New rental homes are being leased out in record time, therefore more owners should be encouraged to put their property on the rental market," Ms Calnan said.

The REIV has had a working committee analyse the proposed Residential Tenancies Regulation in great detail and has made an official submission to the State Government.

“The legislation takes control away from property owners; many landlords are nervous about changes to the investment property they worked so hard to purchase. If rental housing stocks are impacted further, this legislation will make it harder for a tenant to get a rental home.”

“If rental shortages continue to worsen, we have great concerns that the most vulnerable in our society will suffer, many families who are unable to obtain a rental home will be forced onto the streets, placing more pressure on welfare groups and charities.”