With the Melbourne property market booming over the past few years, many Melbournians are choosing to rent over buying their own home. The reasons for this vary from unaffordability to lifestyle options to the freedom of renting vs buying a home.
For whatever reason, the rental market in Melbourne has stayed consistently strong over the past five years. CoreLogic says that rental prices have reduced slightly over this period, allowing the market to stay strong. It is expected that the market will stay at its competitive level due to the drastic increase in both rental and sale prices in neighbouring Sydney. CoreLogic surmises that our ‘affordable’ rental market here in Melbourne is enticing interstate renters to join us so that they can afford to rent a quality property in a good location, surrounded by amenities. Cameron Kusher from CoreLogic, also says that Melbourne’s market has great promise to stay strong as Melbourne has been better than Sydney at building new property, helping to keep our market competitive.
Everyone has their own opinions on how much of their salary should be used for living costs but recently CoreLogic undertook an analysis of the rental market here in Melbourne and found that the average person spends a quarter of their annual income on their rent. The study found that here in Melbourne, the median rent for a property is $390 per week which equates to $20,280 per year.
REA has named Toorak as the most expensive rental suburb last year, with the average rent being a whopping $1100 per week. Following closely is Kooyong (average $1075 per week), Brighton (average $998 per week), Deepdene (average $950 per week) and Canterbury (average $925 per week). REA has named Melton, Melton South, Kurunjan, Millgrove and Frankston North as the cities most affordable rental suburbs, averaging $285 per week to rent.
For more information on rental properties in your area, contact Solid Property Management on (03)9690 2666