Current Rental Market Trends – September Quarter 2025
Melbourne’s rental market remains highly competitive, with low vacancy rates continuing to underscore the imbalance between supply and demand. Despite a softer property sales environment and broader cost-of-living pressures, rental demand has shown no signs of easing—particularly across inner and middle-ring suburbs close to major employment, education, and lifestyle hubs.
While some stability has emerged in rental price growth, underlying fundamentals such as population growth, limited housing supply, and construction delays continue to place upward pressure on rents and restrict tenant choice. For investors, this ongoing shortage reinforces the resilience and long-term strength of Victoria’s rental market.
Rental Market Snapshot, according to the Real Estate Institute of Victoria (REIV):
- Melbourne’s vacancy rate: 2.5% (unchanged from the June quarter)
- Regional Victoria’s vacancy rate: Decreased from 2.1% to 1.9%
- Median weekly rent (Melbourne houses): $580 (steady from last quarter)
- Median weekly rent (Regional Victoria houses): Increased from $480 to $500 per week
Why Are Vacancy Rates Still So Low?
Several factors continue to shape Victoria’s tight rental landscape:
- Population Growth: Migration levels remain high, with new arrivals driving sustained housing demand across both metropolitan and regional areas.
- Limited Housing Supply: Construction activity remains subdued, with higher building costs, labour shortages, and project delays restricting new completions.
- Economic Conditions: Elevated interest rates and affordability constraints are discouraging some would-be buyers, keeping more households in the rental sector.
- Short-Term Accommodation: The growing popularity of short-stay platforms such as Airbnb continues to divert a portion of housing stock away from long-term rentals.
Governments and industry stakeholders are under increasing pressure to address housing supply and affordability issues, as prolonged tightness in the rental market is likely to persist well into 2026.
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.
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📌 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.
