The number of rentals in the Australian state of Victoria fell by just over 24,700 in the space of a year as an investors continue to sell off their properties in the state at an increasing pace.
The data from the Department of Families, Fairness and Housing's latest rental report found that the number of active rental bonds (a proxy for the number of rental properties in a market) fell from 677,492 in September 2023 to 652,766 in 2024 — suggesting the state lost 24,726 rentals in the space of a year.
The number of number of rental properties, measured by active rental bonds, fell from 677,492 in September 2023 to 652,766 in 2024.
This suggests that suggests Victoria lost 24,726 or 3.6% of rentals in the space of a year.
Ray White's chief economist, Nerida Conisbee, says these numbers were what was expected.
“We'd been hearing anecdotally that Victorian investors weren't happy and these numbers now reflect that.”
The pace of the investors sell-off also appeared to be gathering speed, with total rental bonds falling 4,315 in the three months to March 2024, by 7,820 in the three months to June, and 9,498 in the three months to September.
This marked the fastest fall in rental bonds since record keeping began in 1999.
Conisbee says this will continue into 2025, as student caps and high taxes continue to impact the Victorian economy and property market and leaving displeased investor.
The report also found that despite the shrinking rental pool, rents fell in Melbourne actually fell over the last six months along with house prices, benefiting first homebuyers and renters.
Related content