Data from the REIV has shown that the rental vacancy rate for Melbourne in August was 1.4 per cent, a slight improvement from July when it was 1.2 per cent.
REIV spokesperson Robert Larocca said that vacancy rates in Melbourne had remained between 1.2 and 1.4 per cent for over 12 months confirming that access to rental homes was still very difficult.
“The last time we recorded a vacancy rate of over 2 per cent was in December 2005 when it was 2.1 per cent.
“There are two reasons why it’s hard to find rental accommodation in Melbourne at the moment, the city’s population is increasing by around 1,700 per week and there are not enough homes being built to keep up with demand.
“The REIV had hoped that the increased numbers of first home buyers moving from the rental market into their own homes may have led to an increase in the vacancy rate, but this does not appear to have occurred yet.
“The vacancy rate in the inner suburbs has improved from 1.1 to 1.5 per cent, in the middle suburbs it also improved slightly from 1.1 to 1.3 per cent and in the outer suburbs there was a tightening from 0.9 to 0.7 per cent.
“The shortage of rental homes has become one the most intractable problems in the housing market. To fix the problem the vacancy rate needs to be lifted to 3 per cent and the last time it was 3 per cent was in January 2005. Meeting this goal will require substantial private and public investment.
“The investment being made in housing from the State and Federal Governments should help to address the problem but it will take time.
“To increase the level of private investment the State Government should also consider removing the higher rates of stamp duty investors are charged,” Mr Larocca concluded.
Domain Property Advocates is currently running at a vacancy rate of .25%. If you would like to know how your property can be leased quickly to quality tenants and remain leased (therefore keeping your costs to a minimum), contact Melanie Dennis on 9853 5599 or 0416 218 003
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Tags: accommodation in melbourne, cent, First home buyers, housing, middle suburbs, problem, property, property advocates, reiv, rental vacancy rate
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