The cost of a new Victorian house in Melbourne has doubled in the past five years, according to a new report.
The rise in rental rates has come amid concerns about affordability, with many Australians living on less than $200 a week.
The Victorian Government says a new government-commissioned study found the average price of a home rental in Victoria rose by a fifth between 2015 and 2020, from $230,000 to $290,000.
“We’ve seen this over the past three years, and the rise is due in part to rising costs of living and increasing interest rates,” said Andrew McAllister, the Minister for Housing.
“There is a significant difference between the costs of buying a house in Victoria versus a home in other states.
The higher costs mean it is no longer economically viable for many people to live in a home.”
This study shows that the cost of living has increased over the last five years.
“The average price for a house rental was $291,000 in 2020, up from $227,000 a decade earlier.
The Government has also said it wants to see rent costs fall by 25 per cent over the next four years.”
Rent for a new home in Victoria is up 20 per cent since 2020 and it is forecast to rise further, due to a decrease in the national rental vacancy rate,” the report said.
It said a house price increase of 10 per cent was expected in 2021, and 25 per, 30, 50, and 100 per cent would follow in 2024.
The report said house prices had risen by a third in Melbourne, Sydney, Brisbane, Adelaide, Perth and the ACT since 2000.”
The increase in Melbourne rental prices is driven by the continued increase in the cost and quality of the housing stock, particularly the quality of new construction, and is also influenced by an ageing population,” it said.
In contrast, the cost increase in Sydney has been more limited, while Melbourne has seen “a modest increase in home prices” since the early 2000s.”
Our affordability measures have not resulted in any additional costs to households, especially when considering a single owner household,” the Government said.”
In contrast to the other states and territories, Victoria is also a low-cost state.
“In response to the study, Mr McAllisters office said rental affordability was an issue “to be worked on”.”
Our housing affordability measures include a reduction in the price of homes, which has been one of our key areas of focus in recent years, particularly for first home buyers,” he said.