Maribyrnong and Hobsons Bay renters are experiencing some of the worst rental pain in Victoria, according to new data from Suburbtrends.
Suburbtrends releases a monthly Rental Pain Index (RPI) which scores suburb groups out of a hundred on rental pain, the score is derived from measuring rental prices, household incomes, vacancy rates and advertised rentals.
The suburb of Yarraville received the highest RPI of 87 which is indicative of a “severely tight rental market.” Anything over 75 is considered “extreme” rental pain.
Altona Meadows was the second worst among the municipalities displaying an RPI of 83, in comparison to Altona North, Altona, Footscray, Newport, and Braybrook who all had scores above 75.
Maribyrnong’s situation is also “critical” with an RPI of 81, while Seddon, Kingsville, West Footscray and Tottenham all have RPI scores of 80, while Seabrook displayed the least rental pain with a score of 54.
Suburbtrends founder Kent Lardner said this month’s RPI highlights a significant transformation in Melbourne’s rental market, where many renters are spending 30% or more of their household income on rent.
“This shift is particularly alarming considering Melbourne’s long-standing reputation for affordability relative to other capital cities,” he said.
“Which has been a major draw card for both residents and migrants over the last decade.”
Mr Lardner said this trend forewarns that a vast majority of Melbourne’s renters are on the brink of crossing this critical threshold within the year.
“The recent surge in RPI scores across Melbourne’s suburbs is a clear indicator of the growing pressure on renters.
“For years, Melbourne has been celebrated for its relative affordability, offering a compelling alternative to the soaring rental markets of other capitals.
“This trend reversal is a wake-up call, signalling the need for urgent measures to address rental affordability and supply issues.”
Mr Lardner said Melbourne’s appearance on its affordability may be no more.
“Melbourne’s appeal has been rooted in its ability to offer affordable living options compared to other Australian capitals,” he said.
“However, our analysis shows an unsettling trend towards the 30 per cent income threshold for renters, a benchmark of critical financial stress.
“This shift challenges the city’s reputation and requires immediate attention from policymakers to ensure Melbourne remains an attractive and viable option for residents.”
