Melbourne’s Rental Crisis: Why 2025 Rents May Climb Again

The Melbourne rental crisis isn’t just a headline—it’s something I encounter daily, working directly with families navigating its tough realities. Over the past few years, I’ve witnessed Melbourne’s rental market spiral, with rents soaring to unprecedented highs and vacancy rates plummeting. Helping countless families move, I’ve seen firsthand how this crisis, combined with the rising cost of living in Melbourne, is reshaping our city, pushing renters to make tough, sometimes heartbreaking choices about where and how they live.

Back when international borders closed due to COVID, inner-city apartments stood empty, and rents momentarily dropped. But that respite was short-lived. As borders reopened, demand surged again, bringing rents back with a vengeance. Melbourne’s rental affordability is now worse than ever, and families who once comfortably lived in vibrant communities like Brunswick or Carlton are finding themselves priced out, forced to relocate to outer suburbs for financial relief. Even then, many families try to choose the safest suburbs in Melbourne to ensure their new community feels secure as well as affordable.

This isn’t merely a market fluctuation—it’s a fundamental shift in how we live and plan our futures. Even middle-class earners are feeling the pinch, dedicating nearly a third of their incomes to housing. As the owner of North Removals, I’ve seen the emotional and financial toll of this crisis on my clients, emphasising the urgent need for lasting solutions to make Melbourne rental costs manageable once again.

Melbourne’s Current Rental Market

Melbourne’s rental crisis, part of Australia’s broader housing issue, features record-high rents and historically low vacancy rates. As of early 2024, median weekly rent reached approximately $590, marking a 9.6% annual increase, second only to Perth nationally. Rental costs are now comparable in other major cities like Adelaide and just slightly below Sydney. Meanwhile, Melbourne’s vacancy rate is around 1%, significantly below the balanced market threshold of approximately 3%, meaning nearly every rental is quickly taken.

Melbourne’s rental market saw a distinct pattern: demand fell sharply during 2020–21 as international students and migrant workers left due to pandemic border closures, briefly lowering rents. However, demand rapidly surged again from 2022–2023, causing rents to hit new peaks. Recently, I assisted a family move from Brunswick after their rent increased by 15%, illustrating how rental affordability in Melbourne has deteriorated sharply. With average households approaching 30% rent-to-income ratios, renters face mounting pressure and tough relocation decisions.

Figures on Melbourne’s Rental Crisis

I’ve seen the Melbourne rental crisis escalate firsthand in my work as a removalist. It’s part of the broader rental crisis gripping Australia, with rent in Melbourne surging and vacancy rates seeing-sawing over the past five years. Below are some key figures that tell this story in Melbourne’s rental market, 2019–2024.

A dual-line chart illustrating Melbourne’s rental vacancy rate (orange, % left axis) and median weekly rent (blue, $ right axis) from 2019 to 2024. Vacancy spiked to ~5% in 2020 (amid COVID border closures), then fell under 2% through 2021–2023, before edging back up to ~1.9% in late 2024. Rents dipped in 2020 and then climbed ~39% from early 2021 to late 2023, before growth moderated to ~4% in 2024. As shown above, Melbourne’s median advertised rent soared by about 39% between March 2021 and December 2023. This rent boom then slowed sharply in 2024, with median rents rising only around 4% from December 2023 to December 2024. Meanwhile, vacancy rates have eased slightly: after plunging below 2% during 2021–2023, Melbourne’s rental vacancy rate increased from roughly 1.2% to 1.9% through 2024.

For context, during the 2020 pandemic, the vacancy rate had spiked to about 4–5% as international students and migrants left the city – a stark contrast to the sub-2% tight market of 2022–23. This recent uptick to ~1.9% vacancy suggests a small but welcome increase in supply, even if rental costs in Melbourne for tenants are still near record highs.

From my perspective, these numbers aren’t just stats – they reflect real families’ lives.. Stories like theirs have become all too common. Even with a slight easing now, rental affordability in Melbourne is at its worst in over a decade. Until we address the housing shortage in Melbourne and boost affordable housing, many renters will continue to be pushed to the fringe of the city in search of relief. It’s a tough situation and because of that reason I created my guide, best suburbs in Melbourne, where renters can find affordable and same suburbs for their families.

Geographic Distribution of Melbourne’s Rental Crisis

As someone who helps families and renters navigate Melbourne’s property landscape every day, I’ve witnessed firsthand how the Melbourne rental crisis is reshaping every corner of our city. This crisis doesn’t discriminate—it’s not just hitting trendy inner-city apartments or high-demand suburbs like Richmond or Fitzroy; it’s spread citywide, even to places once thought of as affordable havens. Over the last year, Melbourne’s overall median rent has jumped roughly 9.6%, but certain suburbs have blown past that citywide average, showing double-digit price hikes in previously affordable outer suburbs.

Areas like Dandenong, on the southeastern fringe, have surged dramatically, seeing an annual rent increase of about 16%. Meanwhile, Broadmeadows in Melbourne’s north isn’t far behind, with rents climbing around 14% annually. Even Werribee, in the southwestern suburbs, saw rents spike 13%, placing significant strain on renters who thought they’d found a budget-friendly alternative. Just recently, my team helped a young family relocate from Carlton to Dandenong, chasing affordability. However, what was once a pocket-friendly move turned stressful when they realised rents in Dandenong had already soared significantly.

The ripple effect is clear—Melbourne’s outer-ring suburbs are facing unprecedented rental pressures, largely driven by people being priced out of the inner-city and middle-ring areas and pushed further out. CoreLogic data highlights this perfectly: outer municipalities like Greater Dandenong, Hume (Broadmeadows), and Wyndham (Werribee) are now leading Melbourne’s rental market in price growth, though their absolute rents ($520/week for Dandenong, $480/week for Broadmeadows and Werribee) remain somewhat below central Melbourne’s median (approximately $570–590/week).

Back in 2020, Melbourne’s CBD and inner suburbs emptied as international students and workers left, causing rents to plunge temporarily. But since reopening, these inner-city areas have quickly refilled, pushing rents back up. Yet interestingly, these central and affluent inner-suburban areas have stabilised recently, seeing much smaller increases of around 0–5% in the last year.

Rent vs Income in Melbourne

One of the biggest shifts I’ve seen over the past five years is how the Melbourne rental crisis has slowly erased the cost advantage we once had over cities like Sydney. Back in 2019 and early 2020, Melbourne renters were in a better position, paying less for housing and spending a smaller share of their income on rent. It wasn’t perfect, but it was manageable for many. Fast forward to mid-2025, and that gap has closed. Today, the typical renter in Melbourne is spending around 27 to 30% of their household income on rent, which is just a fraction below what people are paying in Sydney.

Just last month, I helped a couple with two kids move from Glen Iris to Werribee. They loved their old place, but the rent jumped nearly $180 a week on renewal—staying wasn’t an option. Thankfully, they booked their move on our Way Cheaper Wednesdays, scoring a handy 15 % discount that made the relocation a little easier on their budget.

Below is a snapshot of how Melbourne’s rental figures compare with other capitals. It puts into perspective how far we’ve come—and how close we now sit to the national affordability tipping point:

City	Median Weekly Rent (2020)	Median Weekly Rent (2025)	% Increase	Rent-to-Income Ratio (2020)	Rent-to-Income Ratio (2025)
Melbourne	~$500	~$610	+22%	~23–26%	~27–30%
Sydney	~$550	~$770	+40%	~28%	~32%
Adelaide	~$400	~$610	+52%	~20–22%	~28–29%
Perth	~$390	~$695	+78%	~20%	~31%
Australia (avg)	~$430	~$643	+33–35%	~27%	~33%

Melbourne’s rents have risen sharply—up 22% since 2020—but what’s even more striking is how closely we now track cities like Sydney and Perth in terms of rent burden. Back in 2020, Melbourne renters were spending around 23–26% of their income on housing. Now it’s closer to 30%, placing us right on the edge of rental stress. Perth and Adelaide, once affordable, are seeing rent-to-income ratios jump above 28–31%, while the national average is now 33%. In short,  the days of Melbourne being the “cheaper capital” are well behind us. Affordability pressures are hitting renters hard across the board, and Melbourne is no exception.

Keep in mind, once you pass the 30% mark, most experts consider that rental stress, meaning you’re spending too much of your pay just to keep a roof over your head. When even traditionally affordable places like Adelaide and Perth are approaching or passing that threshold, you know it’s a national problem. But here in Melbourne, I’ve watched the squeeze play out one move at a time—tenants downsizing (sometimes even turning to self-storage despite the Melbourne storage costs involved), moving further out, or splitting houses to stay afloat. What used to be a choice is now a necessity.

This widening pressure on rental affordability Melbourne-wide is changing the way we live and plan. And if we don’t start tackling supply and affordability now, the next generation of renters will face even tougher decisions.

Causes Behind Melbourne’s Rental Crisis

Pandemic Effect and Rebound

The Melbourne rental crisis was exacerbated by the city’s unique pandemic rollercoaster. During Melbourne’s prolonged COVID-19 lockdowns in 2020–21, thousands of residents left the city, temporarily easing demand. Melbourne’s population fell by over 60,000 in the year to September 2021– a startling exodus that hit inner-city rentals hardest. With international students gone and many young people moving back home, rent in Melbourne’s CBD apartments plummeted; in some areas, asking rents dropped almost 30% in 2020. I remember that period well: my removal business moved plenty of people out of tiny city flats to larger suburban or regional homes, as telework and strict lockdowns made inner-city living less attractive.

Since borders reopened in 2022, Melbourne has experienced a sharp increase in rental demand due to the return of international students, migrants, and locals. Australia’s migration reached record highs, concentrating mainly in Sydney and Melbourne. Consequently, Melbourne’s rental market shifted rapidly from surplus to shortage, causing vacancy rates to plummet to an all-time low of about 0.8% by early 2023. Housing supply lagged significantly behind, intensifying competition and driving rental prices sharply upward.

This heightened competition resulted in Melbourne rents surging approximately 9–10% in 2022 alone, marking the city’s fastest rental growth on record. The Rental Affordability Index highlighted that rental affordability is at its worst in over a decade. Anecdotally, families like one in Northcote faced rent increases of 20% and intense bidding wars, underscoring the severe impact of the housing shortage. Such stories illustrate the dramatic and challenging rebound Melbourne’s rental market has experienced since pandemic lockdowns ended.

This pandemic whiplash – from mass departures to a sudden influx – is a major reason renters are now struggling. It’s a vivid example of how quickly rental costs in Melbourne can skyrocket when demand races past supply, setting the stage for other factors now fueling the crisis in our city.

Pandemic effect on Melbourne rental market (2020–2023)

Period	Population change	Rental market impact	Vacancy rate	Rent change
Lockdowns (2020–21)	Fell by 60,000 residents	Demand eased; inner-city rents dropped ~30%	Higher	Dropped up to 30% (2020)
Post-lockdown rebound (2022–23)	Record migration surge	High demand; extreme competition for rentals	0.8% (2023)	Increased 9–10% (2022)

Reduced New Housing Construction

One major driver behind the Melbourne rental crisis is the slow pace of new housing construction over the past few years. During COVID, Victoria saw a temporary boom in building approvals, especially in 2021 when federal incentives like HomeBuilder pushed approvals to record highs. That year, more than 70,000 dwellings were approved across Victoria, including a massive 48,000 detached houses—a record. But after that peak, things fell off quickly. Rising interest rates, labour shortages, and cost blowouts sent the market into retreat. By late 2023, dwelling approvals in Victoria had dropped back to around 53,000, and apartment approvals in particular had fallen by over 40% compared to pre-pandemic levels.

This dip matters because those 2021 approvals are still being built. In 2024, Victoria led the country in housing completions, delivering just over 60,600 new homes. But with fewer new approvals coming through the pipeline, future supply is already looking tight again. And with the Federal Government aiming to build 1.2 million homes nationally over five years, Victoria needs to deliver around 45,000 a year just to stay on track. Right now, it’s close—but not consistently over the line—and unless approvals lift soon, we’ll fall behind just as population growth returns.

In the meantime, demand’s gone through the roof. Since 2022, Melbourne’s seen a big influx of international students, migrants, and young renters returning to the city. But the supply hasn’t kept up, especially in the apartment sector, which is where most renters live. When my team helped a couple relocate from Southbank to Reservoir this year, they told me they’d been outbid on five apartments in a row. Not because they weren’t organised, but because there just weren’t enough places on the market. Vacancy rates in Melbourne have been hovering around 1.1–1.4%, when a balanced rental market is closer to 3%. That mismatch is driving up rental costs in Melbourne and putting massive pressure on anyone trying to find affordable housing in Melbourne today.

This graph highlights how Victoria’s housing approvals have shifted dramatically since 2018, with detached houses surging to a peak of around 48,000 in 2021—driven by pandemic incentives like HomeBuilder—while unit and apartment approvals dropped significantly, falling to just 15,000 by 2023. Although house approvals have since stabilised, the apartment sector, which is crucial for the Melbourne rental market, has struggled to recover. This imbalance in housing supply is a major contributor to the housing shortage in Melbourne, particularly for renters who rely heavily on units.

With demand rising and fewer new apartments in the pipeline, rental costs in Melbourne remain under pressure, and affordability continues to worsen. Until we see a stronger pipeline of new homes—especially medium- and high-density builds—this housing shortage in Melbourne isn’t going anywhere. And for renters, that means tighter competition, higher prices, and fewer choices.

Policies and Investment

I’ve seen firsthand that the Melbourne rental crisis isn’t just a quirk of the market – it’s also shaped by the policies we set and where investment flows. For instance, many investors sold off properties during and after the pandemic, shrinking the Melbourne rental market. Victoria lost roughly 24,000 rentals in 2024 alone, a record drop in supply, as some landlords exited due to new taxes and stricter rental regulations. This exodus put even more pressure on the affordable housing Melbourne desperately needs, and there has been little incentive to fill the gap by building new low-cost homes. Melbourne’s inner city alone is short about 6,000 affordable dwellings, highlighting a long-running housing shortage.

In 2019, Victoria introduced tenant-friendly reforms, including limiting rent increases to once per year and establishing minimum rental property standards. While these changes improved fairness and housing conditions, they didn’t prevent rents from rising due to strong demand and insufficient supply. Vacancy rates remain near historic lows, intensifying competition among renters. Despite annual caps, landlords routinely raise rents, contributing to Melbourne’s worst rental affordability since 2011, with average weekly rents around $600.

Melbourne rental policy timeline and market impacts (2019–2024)

Year	Policy/Event	Market Impact
2019	Tenant-friendly reforms introduced	Rent hikes limited, minimum standards enforced
2024	Rental affordability hits its worst level since 2011	24,000 rentals lost; increased competition
2024	Inner-city affordable housing shortfall	6,000 dwellings gap; intensifying shortage
2024	Rental affordability hits worst level since 2011	Landlord sells off due to taxes/regulations

Internal Migration

The Melbourne rental crisis hasn’t just been driven by local demand—it’s been shaped by a strong wave of internal migration into the city. As Sydney rents and living costs shot up over the past few years, thousands of people started eyeing Melbourne as a more affordable alternative. And the numbers back it up: in late 2023, Melbourne’s median rent was around $560 per week, compared to $740 in Sydney—a difference of nearly $10,000 a year. That affordability gap triggered a population moving from Sydney to Melbourne. According to ABS data, New South Wales recorded a net loss of over 28,000 residents to other states in the year to March 2024, while Victoria gained over 18,000, the highest in the country. And much of that movement landed in Melbourne.

But it’s not just about people leaving Sydney. There’s been a strong flow of rural-to-urban migration within Victoria. People from regional areas—like Ballarat, Shepparton and Gippsland—have been relocating to Melbourne in search of better job opportunities, healthcare, education and public transport. The Regional Movers Index found that Melbourne had a 17% year-on-year increase in regional arrivals during 2024, reversing the earlier pandemic trend of people fleeing cities. I’ve personally helped several families move from Warragul and Echuca into outer suburbs like Craigieburn and Tarneit. They weren’t chasing luxury—they were trying to find affordable housing in Melbourne that still connected them to essential services.

Add to this the return of international students, many of whom arrive via Sydney but settle in Melbourne for its education hubs and more competitive rental market. Combined, these flows have put serious pressure on the Melbourne rental market, especially in city-fringe suburbs that used to be accessible for first-time renters. Vacancy rates across Melbourne have remained under 1.5%, well below the 3% threshold considered “balanced,” and rent in Melbourne has risen over 30% since 2020. It’s no wonder we’re seeing higher rental costs, tighter competition, and a growing housing shortage in Melbourne. If these migration trends continue—and it looks like they will—Melbourne’s rental affordability will only get tougher for locals and newcomers alike.

This chart illustrates how Victoria has become one of the top destinations for internal migration, gaining around 18,000 residents while New South Wales saw a net loss of over 28,000. The trend suggests that people are actively relocating to Melbourne and other parts of Victoria, contributing additional pressure to the city’s already constrained rental market. The shift in population is reshaping rental demand at a state level, adding to the urgency of addressing housing availability in metropolitan Melbourne.

Consequences for Melbourne Tenants

Young Professionals and Students

The Melbourne rental crisis has severely impacted young people, particularly students. When international students returned in 2023, they faced intense competition due to historically low vacancy rates. Affordable accommodation near campuses became scarce, with just 5% securing university housing. Many students resorted to overcrowded shared houses or makeshift living arrangements. Typical rent for purpose-built student housing reached approximately $530 weekly, forcing students into situations like shared bedrooms or sleeping in common areas.

Even now, rents remain elevated, about 5.5% higher than last year. Consequently, median earners are dedicating approximately one-third of their income to rent, the highest proportion in decades. Recently, my team at North Removals helped new graduates move from a small Fitzroy apartment to a larger suburban home with our man with a van service, planning to share rent among four roommates instead of two. Such scenarios highlight how Melbourne’s unaffordable rental market is dramatically reshaping living arrangements for a generation.

Families and Local Workers

The Melbourne rental crisis isn’t just squeezing the most vulnerable – even middle-class families and local workers are feeling the strain. Housing advocates note that Australians on six-figure salaries are now struggling with rental stress, with one report finding a single person needs about a $130,000 income to comfortably afford a typical unit rent. In Melbourne, the average household’s rent now eats up roughly a quarter of its income – around 25% – a sharp rise from just a few years ago when it was closer to one-fifth. This rapid jump in rental costs outpacing incomes means many working families are officially in “moderate” stress, and I’ve seen firsthand how they’ve had to make tough choices to cope.

The Melbourne rental crisis has significantly impacted essential workers, including teachers, nurses, and hospitality staff, forcing them to live farther from their workplaces. Around 5% of Victorian households are experiencing severe rental stress, driving increased demand for assistance from charities and community organisations. Tenants Victoria, overwhelmed by requests, struggles to support low- and middle-income renters. The crisis affects entire communities, with families and tradespeople relocating or moving in with relatives, highlighting the widespread societal strain.

How Melbourne families respond to rising rents

Coping Strategy	Example or Impact
Moving to outer suburbs	Northcote family moved to Melton, saving $200/week
Longer daily commutes	Commuting from places like Campbellfield (20 km) or Melton (30 km)
Downsizing or choosing older homes	Accepting below-ideal housing standards
Sharing housing	Families moving in with relatives to reduce costs

Local Stories

The Melbourne rental crisis is directly impacting local families, exemplified by one family in South Melbourne forced out when their landlord sold the home. Despite months of searching, intense competition at inspections and a nearly 20% increase in weekly rents severely limited their options. Ultimately, they had to move almost 50 km away to find affordable housing. Their experience highlights the immense pressure and difficulty ordinary families face in Melbourne’s current rental market.

I see these trends first-hand. When my team helped that South Melbourne family pack up for their move, they told us it felt like the city had left them behind. I’ve heard similar stories from many clients – good tenants priced out and pushed further from their communities because of the broader housing shortage Melbourne is facing. Each local story like this is a human reminder that behind the statistics are real people making tough choices. It’s something I keep in mind as we look at ways to navigate and alleviate this crisis in the sections ahead.

Key statistics on Melbourne’s rental crisis (2024)

Statistic	Value
Victorian households facing rent increase	58%
Vacancy rate (Greater Melbourne)	Around 2%
Recent rental increase compared to pre-pandemic	More than double
Distance family moved due to affordability	Almost 50 km from city centre
Typical rent increase faced by families	Nearly 20%

Recent Signs of Relief

After a grim period in the Melbourne rental crisis, we finally saw a few rays of hope towards the end of 2024. Unlike Sydney’s still-heated market, the Melbourne rental market experienced slight relief late last year, with more properties available and vacancy rates creeping up from roughly 1.2% to about 1.9%. For context, rents had surged nearly 39% in Melbourne from early 2021 to late 2023, so even a modest slowdown in 2024 was significant, with official CPI data showing the smallest quarterly rent rise in almost three years by the end of 2024.

What is Victoria Doing to Address the Rental Crisis?

Government Housing Plans

As the Melbourne rental crisis continues to bite, I often get asked what the Victorian government is doing about it. One major response has been Victoria’s Big Housing Build – a $5.3 billion plan launched in 2020 to deliver 12,000 new social and affordable homes within four years. Billed as the state’s largest-ever housing investment, this initiative promised roughly 9,300 new social housing units and 2,900 affordable homes.

Fast forward to today, and the results are mixed. Almost 10,000 homes have been built or started under the Big Housing Build so far, and about 5,000 households have moved into those new dwellings. That’s real progress, but it hasn’t yet turned the tide: Victoria’s social housing stock has grown by only around 4,400 dwellings since 2020, and the social housing waitlist still stretches to tens of thousands of people. Rental affordability in Melbourne is now at its worst level in over a decade – the city’s RAI score fell another 6% last year – and median rents have jumped more than 50% over the past ten years to roughly $600 per week. In short, even thousands of new homes aren’t enough to fully ease the pressure.

I see the human side of this every day. When my team helped moving a family in Brighton into a community housing unit after months of couch surfing, the relief on their faces was unforgettable. It showed me the impact that the affordable housing Melbourne desperately needs can have on people’s lives. Building more homes is only part of the solution – even with these efforts, the housing shortage Melbourne faces continues to leave many renters in limbo, waiting for real relief.

Key housing affordability trends in Melbourne (2020–2024)

Indicator	Situation by 2024
Social housing waitlist	Tens of thousands of people
Change in rental affordability (RAI score)	Fell by 6% (worst in over a decade)
Median weekly rent	~$600 (up >50% over past decade)
Social housing stock growth since 2020	Around 4,400 additional dwellings

Rental Market Incentives

To address Melbourne’s rental crisis, the Victorian government has introduced tax incentives to increase housing supply, particularly through build-to-rent projects—long-term rental apartment developments. Incentives include significant reductions in stamp duty and a 50% land tax discount, attracting major investment. Currently, over 18,000 such apartments are in development, with approximately 1,000 completed recently. Some projects, like a Richmond complex reserving 10% of 820 units for affordable housing, aim to gradually enhance Melbourne’s rental affordability.

Nevertheless, the momentum is encouraging. Housing advocates widely agree that increasing supply is crucial for resolving our rental crisis. These tax-incentivised projects should progressively ease Melbourne’s housing shortage by introducing modern, tenant-focused homes. I’m optimistic that, as these apartments become available, more families will find affordable places to live, gradually slowing the rapid rise of Melbourne rents. It’s a long-term strategy, but one likely to ease rental pressures significantly over time. If you are moving within Victoria soon, please check my change of address checklist now.

Key Victorian government incentives for build-to-rent projects

Incentive	Description
Stamp Duty Reduction	Slashed stamp duty on new housing projects
Land Tax Discount	50% discount on land tax for build-to-rent
Affordable Housing Inclusion	Some projects dedicate units as affordable (e.g., 10% of the Richmond project’s 820 units)

Tenant Support

As the Melbourne rental crisis drags on, renters are feeling the squeeze from every angle. Rents have skyrocketed – Melbourne’s median weekly rent just hit a record high of about $500 (houses) and $495 (units), up from $460 and $420 a year ago. At the same time, the housing shortage Melbourne faces is reflected in a vacancy rate of only 1%, an all-time low. It’s no wonder rental affordability in Melbourne has deteriorated to its worst level since the Rental Affordability Index began, falling roughly 6% in just one year (and pushing many low-income renters into hardship).

Several support programs help Melbourne renters facing affordability issues. The Commonwealth Rent Assistance (CRA) subsidy increased maximum rates by 15% in September 2023, providing financial relief for low-income tenants. Victoria offers RentAssist, an interest-free loan for rental bonds. Additionally, community organisations and charities offer emergency rental payments and financial counselling. Tenants Victoria provides free legal advice and support for disputes and evictions, complemented by grassroots groups like Renters and Housing Union (RAHU) advocating tenant rights. Consumer Affairs Victoria also investigates excessive rent increases, handling 5,448 such challenges in 2022–23 alone—a 120% increase from the previous year.

To make it easier for readers, I’ve compiled a brief overview of key support options for tenants:

Support Option	Description
Commonwealth Rent Assistance (CRA)	Ongoing federal payment for eligible low-income renters to help cover rent. The maximum rate was boosted 15% in 2023 to provide extra relief (Treasury 2024).
RentAssist bond loans (Victoria)	Interest-free government loans for rental bonds, helping renters who can’t afford the upfront bond to secure a home.
Tenants Victoria (independent NGO)	Free legal advice and assistance for Victorian renters. Offers a phone advice line and helps with issues like evictions, repairs and bond disputes.
Renters And Housing Union (RAHU)	Grassroots union of renters that advocates for tenants’ rights. Organises renters to collectively negotiate with landlords and provides peer support and advice.
Consumer Affairs Victoria (CAV)	Government body that enforces rental laws. Can review proposed rent increases (and order reductions if an increase is beyond market rates) and provides information on renter rights (free of charge).

Support systems significantly help renters during Melbourne’s rental crisis. When assisting a family moving out of Kew after facing a nearly 20% rent increase, we saw firsthand the anxiety it caused. However, after referring them to Tenants Victoria, they received valuable legal guidance, successfully negotiating a move-out extension and partial bond refund. Many clients have similarly benefited from timely advice, highlighting the critical role expert support plays in reducing stress and financial burdens during challenging relocations.

Policymakers in Victoria are increasingly responding to renters’ needs, with measures like banning no-fault evictions to prevent unjustified rent hikes. Discussions continue about capping rent increases based on inflation, similar to policies in the ACT, to improve affordability. The limited effectiveness of Victoria’s current small-scale landlord register indicates a need for more robust licensing, complemented by suggestions for a national renters’ ombudsman. These reforms aim to ensure greater fairness and stability for everyone who is relocating to regional Victoria.

Federal and State Collaboration

The Melbourne rental crisis has grown beyond what Victoria can tackle alone. Addressing it requires close federal–state collaboration, since key levers – immigration, economic policy, and funding for housing – are controlled nationally. Australia’s population surged by 2.2% last year, with net overseas migration of roughly 454,000 people, more than double the decade average, and dramatically increasing demand for rent in Melbourne.

The federal government’s role is especially vital in boosting housing supply and affordability. Victoria is counting on national schemes like the new Housing Australia Future Fund – a $10 billion initiative to build 30,000 social and affordable homes across Australia over five years. Homes funded today won’t be move-in ready tomorrow, and in the meantime, vacancy rates remain near record lows. Even as rent growth shows early signs of cooling – Melbourne’s annual rental increase has eased to around 3% after double-digit surges in 2022 – tenants are still facing a housing shortage Melbourne-wide.

When my team helped a family relocate from Melbourne to Geelong after their rent jumped sharply, I saw firsthand how policy debates translate into real-world stress. They asked me if any relief was coming. I told them about the new federal housing funds and Victoria’s social housing projects, but we all understood these solutions won’t kick in overnight. The encouraging news is that all levels of government are finally pulling in the same direction to tackle the Melbourne rental market’s challenges. The key now is bridging the gap until those longer-term measures take effect – something we’ll explore next.

Affordable, Reliable Moves During Melbourne’s Housing Shortage with North Removals

Melbourne’s rental affordability crisis highlights critical issues: rapidly rising rents, inadequate housing supply, and immense pressure on families and workers city-wide. While recent policies and developments offer hope—like Victoria’s Big Housing Build and build-to-rent incentives—these solutions will take time to truly ease the housing shortage Melbourne faces. Immediate relief remains crucial for renters caught in the crossfire.

I recall clearly helping a young family relocate from Melbourne to Ballarat after their landlord increased rent by 15% overnight. They loved their neighbourhood—its schools, cafes, and sense of community—but staying wasn’t financially feasible. The emotional toll was evident, underscoring the real-life impact behind every statistic. Stories like theirs remind me that beyond policy debates, people urgently need tangible support and affordable options.

If you’re facing the stress and uncertainty of Melbourne’s rental market, remember you’re not alone. At North Removals, we’ve built our reputation as the best removalist in Melbourne by committing not only to helping you move but also to easing your transition during these challenging times. With more than 600 five-star reviews backing our service, you can trust us to handle every detail of your move. Reach out today and let’s get you settled with confidence.