A new report from PropTrack has found that Victorian renters are facing the hardest conditions in 15 years.
While the latest Rental Affordability Report called Victoria the nation's most affordable for tenants when contrasting typical wages with rental costs, it has seen a drastic increase in price, and just half of the state's properties advertised in the second half of last year were within reach for a typical household.
A typical household in 2020 and 2021 were able to afford to rent 75% of Victorian homes without spending more than a quarter of their income.
In the months between July and December 2024, this had fallen to 54%, and for Victorians on the lower-income end it was less than 10%.
These mark the toughest times for renters in the state since 2010, when State Library records show petrol cost just $1.19 a litre and Melbourne’s median house price sat at just $456,000.
However, more broadly REA Group senior economist and author of the report, Angus Moore says that it is doing better than other states.
The report found that overall rental affordability was worse in New South Wales, and other states weren't far behind, and looking nationwide renters are “facing the worst level of rental affordability in at least 18 years”.
NSW's current affordability levels have fallen below its previous low point in 2010 to 2011 following the Global Financial Crisis, but difficulty with affordability is not a new issue for the state, largely driven by Sydney which has the most expensive rental market in Australia.
