Melbourne rents continue to climb

Domain provided an update on the current market conditions via their latest Rent Report, which was released during the week. Their figures are based on advertised rents around Melbourne and show that in the June quarter this year the asking price for both houses and units for rent hit $600 per week.

This figure reflects an increase of 0.8 percent for houses in the second quarter of 2026, whilst rents for units do not appear to have moved from the record levels they recorded in March.

Whilst many renters around Melbourne will no doubt be disappointed to read about increasing rents, it’s worth noting that other capital cities have recorded larger rental increases, meaning that Melbourne is actually now the most affordable capital city to rent in!

As we’ve reported many times in the past, one of the key reasons for the continuing increase in average rents is the ongoing shortage of available rental properties. The latest data from Domain indicates that the vacancy rate across Melbourne at the end of June was just 1.2 percent. When you consider that the vacancy rate that is generally considered to reflect a balanced market in our city is 3 percent, it’s clear that this is a very tight rental market indeed.

Of course, one of the other factors pushing up rents is the efforts of rental providers to recover the additional costs associated with their properties, be it tightened regulations on property fittings and amenities, higher interest rates and taxes.

These trends certainly seem to have had an impact on the overall pool of rental properties, with many agents reporting a reduction of available rental properties at the lower end of the price spectrum.

Taking all these factors into consideration, it is clear that the current rental market in Melbourne is one that requires experienced and objective advice to navigate it productively. So, if you are currently contemplating your next move, don’t hesitate to give our highly regarded team at Barry Plant Thomastown a call this week on 9466 3233.

Cheers,

Con Constantinou

Barry Plant Thomastown