Rental prices outside of Melbourne have skyrocketed to eye-watering heights, with homes and apartments in some of the most in-demand areas rising to unprecedented levels.
Among those feeling the pinch are renters on Victoria’s Mornington Peninsula – home to seven of the state’s top eight postcodes for rental increases – where rent has risen by as much as 20 per cent.
It comes despite lockdowns and public health orders over two years of the pandemic and a population decrease in the state.
Tenants Victoria chief executive Jennifer Beveridge said the trend wasn’t only being witnessed on the Mornington Peninsula, but in other regional areas.
“This became a problem during the early years of Covid, where people were relocating out of the cities and into either the outer suburbs or the regional parts of the state,” Ms Beveridge told ABC News.
“Mornington Peninsula is particularly badly hit, also parts of other coastal parts of Victoria, but as far away as Mildura and Horsham are also feeling the pinch that the vacancy rates there are at levels never seen before and the price of rents in regional areas are not that different to what they are in the city.”
Data released this week from financial services firm CoreLogic analysed rental prices between January 2020 and 2022.
The Mornington Peninsula has been particularly hard hit, with the area reporting some of the biggest increases in rents over the pandemic.
According to the data, rents in Blairgowrie grew by 35.4 per cent, while Rye and St Andrews Beach both increased by 34.9 per cent.
The data across Victoria’s 289 postcodes reported an average rise of 9.1 per cent for houses and 2.34 per cent for units.
The drive in prices has been attributed to the pandemic forcing people to work from home, with many taking advantage of the health orders by moving to the coast, or other regional areas.
The average rent across Melbournexjmtzyw currently stands at $380 per week, while it is $360 in regional Victoria.
Ms Beveridge said the issue was now causing people who lost employment and had to leave their rentals during the pandemic to find it impossible to get back into the market.
“They are the very ones who are unable to find places to live because the cost is so high,” she said.
“These are the people who looked after us during the pandemic, who continued to serve us in supermarkets, make our coffees, provide cleaning services – all of those people who are on lower incomes are the ones who are most hit by these increased costs.”
The rental rises have occurred amid concern the state’s population has fallen faster than any other state or territory.
New data from the Australian Bureau of Statistics found the state’s population shrunk by 32,700 people since 2021.
Shadow treasurer David Davis blamed the exodus on high taxes and cost of living as well as lockdowns.
“In only a few years, Victoria has gone from the fastest growing to fasting shrinking state. Victorian families and businesses need a new plan to get back on track,” Mr Davis said.
“Victoria’s population falls are a worrying trend for the future of our state.”
