Melbourne rent prices dawdle behind Australian average

Australian rent listings approaching 12-month high

Melbourne rent prices dawdle behind Australian average

According to PropTrack’s latest data, median advertised rents have surged 48% nationwide, rising from $420 per week in 2019 to $620 in 2024, yet Melbourne’s rent growth has lagged.

In 2019, Melbourne accounted for 22% of rentals priced below $360 per week. By 2024, Melbourne hosted 29% of affordable rentals priced under $530. This is a notable increase and higher than its overall share of the rental market, which stands at 19%.

"Rapid rent growth driven by extremely limited availability amid strong demand has made conditions very challenging for renters for the past few years," said PropTrack analysts. "But some positive signs are emerging, with rent growth finally starting to slow."

In contrast, cities like Perth and Adelaide have experienced sharper rent increases, reducing their proportion of affordable rentals. Perth, in particular, has changed dramatically- the West Australia capital previously accounted for 14% of affordable rentals, but now represents just 3%.

Comparatively cheaper rents in Melbourne reflect the Victorian capital’s comparatively weak house prices.

As of Friday, 17 January, CoreLogic’s daily home value index shows that Melbourne is down 3.2% year on year and is down 1.8% year on year. Perth, in contrast, is up an eyecatching 18.5% year on year, while Brisbane and Adelaide are up in the low single digits.

Listings approaching 12-month high

While rent prices, in general, have soared to record highs, PropTrack’s senior data analyst Karen Dellow stated that listings are approaching 12-months highs due to January being the busiest month of the year for renters.

“However, in spite of the abundance of listings, the search for affordable rental properties remains challenging for many,” Dellow added.

“Across most regions and capital cities, median weekly rents are at an all-time high, making it increasingly difficult for renters to find affordably priced homes.”