Current Rental Market Trends
Melbourne’s rental market continues to reflect a tight balance between demand and supply, with tenants facing ongoing competition for available homes. Despite broader economic pressures, including interest rates and cost-of-living challenges, rental demand remains strong—particularly in well-located suburbs close to transport, education, and employment hubs.
Limited housing supply, slower construction pipelines, and population growth are all contributing to upward pressure on rents and keeping vacancy rates relatively low. This environment is creating challenges for renters while reinforcing the resilience of the rental market for property investors.
Rental Market Snapshot, according to the Real Estate Institute of Victoria (REIV):
- Melbourne’s rental vacancy rate remained the same at 2.5% as of 30 June 2025, as it was recorded in the last quarter.
- Regional Victoria’s vacancy rate decreased from 2.1% to 1.9% as of 30 June 2025, as it was recorded in the last quarter.
- Weekly median rent for houses in Melbourne remained at $580 per week.
- Weekly median rent for houses in regional Victoria increased from $480 per week to $495 per week.
Why Are Vacancy Rates Still Low?
Several factors contribute to Melbourne’s challenging rental market:
✔️ Population Growth – Increased migration and urbanisation drive housing demand.
✔️ Limited Housing Supply – New housing developments struggle to keep pace.
✔️ Economic Conditions – Higher interest rates deter some buyers, keeping more people in the rental market.
✔️ Short-Term Rentals – Platforms like Airbnb reduce the availability of long-term rentals.
Governments and policymakers monitor these trends closely, as low vacancy rates often signal affordability concerns and market imbalances.
Navigating the Tight Rental Market – What Can Renters Do?
If you’re struggling to find a rental, consider these strategies:
🔹 Expand Your Search Area – Nearby suburbs may offer better availability and affordability.
🔹 Set Up Alerts – Use rental platforms to receive instant notifications for new listings.
🔹 Leverage Your Network – Some rental opportunities come through word of mouth before hitting the market.
🔹 Explore Alternative Arrangements – House-sharing or short-term rentals can provide temporary solutions.
🔹 Be Prepared & Act Quickly – Have all required documents ready (ID, income proof, references) to strengthen your application.
Looking for Investment Opportunities?
We hope you enjoyed the information on Melbourne’s Rental Market Snapshot.
At Crest Property Investments, we specialise in sourcing brand-new and off-the-plan properties for buyers across Melbourne and Australia. Whether you’re an investor or looking for your next home, we provide expert guidance through every step—from property selection to settlement.
💡 Want more insights? Check out our Market Insights and YouTube channel for expert analysis and property trends.
📞 Contact us today via www.crestproperty.net.au for a consultation.
📌 Disclaimer: While we ensure the accuracy of this information at the time of publication, market conditions and legislation may change. Contact us for the latest updates.
