It wasn’t long ago that Melbourne was known for its café culture, trams, and sky-high housing costs. Now, it’s making headlines for a different reason — it’s become the most affordable capital city in Australia to rent a house.
Melbourne Tops the List for Rental Affordability
According to new data from CoreLogic, Melbourne has overtaken Adelaide, Brisbane, and even Perth to become the cheapest capital city in which to rent a detached home. The shift comes as rental prices in other major cities continue to climb, particularly in Perth and Brisbane, where surging demand and limited supply are pushing weekly rents to record highs.
Melbourne’s median house rent now sits around $580 per week, compared to $630 in Sydney and $650 in Perth. It’s a surprising turnaround for a city that just a few years ago was considered one of the most expensive in the country.
Why Melbourne Rents Are Relatively Lower
Experts say Melbourne’s relative affordability has less to do with falling prices and more to do with how quickly other markets have risen. After years of pandemic-related population losses, the city’s rental market is still stabilising, even as migration and housing demand rebound.
CoreLogic’s head of research Eliza Owen said Melbourne’s supply of new homes and its slower rent growth compared to other capitals have helped keep prices in check. Meanwhile, Perth, Brisbane, and Adelaide have faced much tighter vacancy rates, driving intense competition for available properties.
Vacancy rates in Melbourne have edged up slightly to 1.2%, still low by historical standards but higher than the near-zero rates seen in parts of Western Australia and Queensland, explains SBS News.
Renters Still Feeling the Pinch
Even with its “most affordable” title, renting in Melbourne is far from easy. Wages have not kept pace with rent increases, and competition for well-located homes remains fierce. Suburbs near transport corridors and universities are seeing strong demand from returning international students and young professionals.
Tenants’ advocacy groups say many renters are still struggling to secure stable leases, with inspections attracting dozens of applicants. They’re calling for stronger renter protections and more investment in social housing to relieve long-term pressure.
A Tale of Two Markets
The data highlights how Australia’s rental landscape is splitting into two realities — cities like Perth and Brisbane with extreme rent growth, and Melbourne, where prices are rising at a slower pace but still remain high relative to income.
Economists say Melbourne’s affordability advantage could narrow later this year as migration continues to pick up and new housing construction lags behind population growth.
For now, renters in Victoria might finally be catching a small break — even if it doesn’t feel that way on inspection day.
