When it comes to news about Melbourne's rental market, we're used to hearing about the bad stuff. Which is par for the course, because it has been fairly grim in the rental property market for the last couple of years – with interest rate rises causing rent increases galore, compounding money woes caused by the rise in cost of living. But thankfully, we've started 2024 off with some great news – with recent data from property website Domain showing that rental price growth in Melbourne has finally stopped.
The latest Domain Rent Report revealed that rental price growth in Melbourne has plateaued, after two years of constantly rising, which was the longest and steepest period of rent increases ever recorded. The report does state that rental prices are still at a record high overall, but hey – they're no longer increasing, so let's celebrate that small win. The plateau means that Melbourne has regained its status as the most affordable capital city in Australia for renters (tied with Hobart). So as a silver lining, be thankful you're not living in Sydney, which has the most expensive rent rates. The report cited rising demand and limited supply as the main cause of the rental crisis in Australia, highlighting the need for the government to focus on improving the supply of affordable housing.
To help renters find reasonably priced spots to live, Domain has also spotlighted the cheapest suburbs to rent within 10km of Melbourne’s CBD. Bearing in mind this list refers to units for rent (as units are always cheaper than houses), the cheapest suburb was surprisingly Caulfield East, followed by Gardenvale and West Footscray. Check out the full list below.
The cheapest suburbs to rent within 10km of Melbourne CBD:
- Caulfield East
- Gardenvale
- West Footscray
- Fairfield
- South Kingsville
- Thornbury
- Brunswick West
- Ascot Vale
- Seddon
- Essendon
You can learn more about the Domain Rent Report and its findings about Melbourne’s rental market over here.