Number of affordable rental properties in Melbourne plummets

Melbourne’s rising residential towers are adding thousands of new rental properties to the city, but they are priced out of reach of the tenants most in need.

As the number of rental properties in Melbourne exploded over the past decade, the number of those defined as affordable plummeted, official figures show.

Between March 2006  and March 2016, properties available to lease in metropolitan Melbourne more than doubled from about 24,000 to 50,000.

At the same time, the number of affordable rentals – defined as costing no more than 30 per cent of government assistance – halved, the Department of Health and Human Services’ Rental Report reveals.

These Melburnians had 6638 affordable rentals to choose from in 2006. Now, it’s only 3175.

Even those with solid employment are finding Melbourne’s rental market increasingly tough.

Personal trainer Anton Bosnjak is struggling to find an affordable rental in the Keilor area. While it would be ideal to live on his own, he said, the rent would be significantly more than 30 per cent of his income.

“If it was affordable, I think everyone would live on their own but the average price is at least $350 per week,” Mr Bosnjak said.

The 27-year-old is using platforms such as Flatmates.com.au and Facebook to find a room in a sharehouse within his budget.

The city councils with the greatest decline of affordable rentals were those that traditionally have offered lower rents: Dandenong, Casey, Frankston and Brimbank.

Bill Buccilli, of Barry Plant Sunshine, confirmed there was increasing competition for cheaper rentals, with tenants priced out of Seddon and Footscray looking further out.

The data has concerned housing experts, who fear vulnerable Melburnians will be squeezed even further out to the city’s edges or face homelessness.

RMIT University professor Mike Berry said previous research indicated that people on higher incomes were pushing lower-income tenants out of anything that was vaguely well-located in big cities.

A lot of the new rental stock was professionally managed by agents, who screen for well-paid tenants with secure jobs and sound rental history, he said.

“If you happen to be an unemployed young person or an Aboriginal turning up, you’ll suddenly find that the places that are advertised have mysteriously just been rented before you walked in the door – because there’s massive discrimination,” Professor Berry said.

“It’s interesting that the two cities that vie for the world’s most liveable city, Melbourne and Vancouver, both have two of the most unaffordable rental housing markets in the world.”

Victorian Council of Social Service chief executive Emma King said a growing number of Victorian families were experiencing housing stress.

“Many across Victoria are finding it increasingly difficult, if not impossible, to find a reasonable and affordable home to live in,” Ms King said.

“Melbourne can’t claim to be the world’s most liveable city while people are sleeping rough in the streets and families are worried about being evicted.”

Adrian Pisarski of National Shelter said even with increased supply, the properties being built weren’t affordable for people on low incomes because they were mainly higher-priced apartments in the inner city.

Mr Pisarski said there was increasing evidence that a lot of the new supply – bought by domestic and foreign investors – remained vacant, which did not help reduce the backlog of affordable rentals needed.

“Effectively, all of our inner cities are being divided between those who can afford to live where jobs and opportunities are, and those who can’t,” he said.

“Homelessness doesn’t necessarily mean you’re living on the streets … it can mean that you’re staying with friends in overcrowded accommodation or sleeping on people’s couches.”