New research commissioned by RentRabbit.com.au has found the top 20 Melbourne rental markets where conditions have most turned in favour of renters over the past 12 months.
The quarterly RentRabbit.com.au Better Renting Report identifies Melbourne’s top 20 suburbs that are both suitable for renters and where conditions have turned in favour of renters over the past 12 months.
To make sure suburbs were tenant-friendly, they needed to be large enough (at least 1,000 properties) and close enough to the Melbourne CBD (within 200km).
To make sure conditions in those suburbs had turned in favour of renters, their vacancy rate needed to have increased by at least 0.6 percentage points over the past 12 months, while their median weekly rent needed to have either fallen or remained unchanged during that period.
The top 20 ranking included 11 house markets and nine-unit markets.
All the suburbs had a vacancy rate of at least 1.9%, while weekly rents ranged from $350 to
$650.
RentRabbit.com.au co-founder Ben Pretty said the research shows how tough life can be as a tenant in Melbourne.
“The RentRabbit.com.au Better Renting Report highlights that Melbourne renters are able to find some tenant-friendly suburbs where vacancy rates have increased over the past year and rents have either fallen or held steady – which, in an inflationary environment, is a fall in real terms,” he said.
“That said, those tenant-friendly suburbs are very much a minority of the market right now.
“This is all about supply and demand. Where supply is relatively low and demand relatively high, it’s hard for tenants to find accommodation, which leads to falling vacancy rates and rising rents.
“For the sake of families and people on average incomes, I’d like to see a more balanced rental market. For that to happen, supply needs to increase, which means we need more investors to enter the market and more new builds to come online.”
Top 20 ranking
| Rank | Suburb | Postcode | Type | Vacancy rate (1 year ago) | Vacancy rate (now) | Vacancy rate (change) |
| 1 | Derrimut | 3030 | House | 1.2% | 10.3% | 9.1 percentage points |
| 2 | Mount Duneed | 3217 | House | 2.4% | 7.1% | 4.7 percentage points |
| 3 | Coolaroo | 3048 | House | 3.0% | 5.0% | 2.0 percentage points |
| 4 | Dingley Village | 3172 | Unit | 0.9% | 2.6% | 1.7 percentage points |
| 5 | Bannockburn | 3331 | House | 1.5% | 2.9% | 1.4 percentage points |
| 6 | Notting Hill | 3168 | Unit | 2.0% | 3.2% | 1.2 percentage points |
| 7 | Campbellfield | 3061 | House | 1.9% | 3.1% | 1.2 percentage points |
| 8 | Kingsville | 3012 | House | 1.4% | 2.6% | 1.2 percentage points |
| 9 | Oak Park | 3046 | Unit | 2.7% | 3.7% | 1.0 percentage points |
| 10 | Ivanhoe East | 3079 | House | 2.1% | 3.1% | 1.0 percentage points |
| 11 | Airport West | 3042 | Unit | 2.2% | 3.2% | 1.0 percentage points |
| 12 | Bonbeach | 3196 | Unit | 0.9% | 1.9% | 1.0 percentage points |
| 13 | Keilor Downs | 3038 | House | 2.2% | 3.1% | 0.9 percentage points |
| 14 | Mordialloc | 3195 | Unit | 2.2% | 3.0% | 0.8 percentage points |
| 15 | Mitcham | 3132 | House | 1.6% | 2.3% | 0.7 percentage points |
| 16 | Ashburton | 3147 | House | 1.8% | 2.5% | 0.7 percentage points |
| 17 | Parkdale | 3195 | Unit | 1.4% | 2.0% | 0.6 percentage points |
| 18 | Nunawading | 3131 | Unit | 2.4% | 3.0% | 0.6 percentage points |
| 19 | Ivanhoe | 3079 | House | 3.8% | 4.4% | 0.6 percentage points |
| 20 | Coburg North | 3058 | Unit | 1.7% | 2.3% | 0.6 percentage points |
Key stats on the top 20 suburbs
1. The house market of Derrimut (Brimbank, Victoria)
‘Middle city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 1.2% | 10.3% | 9.1 percentage points |
| Median weekly rent | $400 | $350 | -5.0% |
2. The house market of Mount Duneed (Geelong, Victoria)
‘Commutable’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 2.4% | 7.1% | 4.7 percentage points |
| Median weekly rent | $420 | $420 | 0.0% |
3. The house market of Coolaroo (Tullamarine – Broadmeadows, Victoria)
‘Middle city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 3.0% | 5.0% | 2.0 percentage points |
| Median weekly rent | $350 | $350 | 0.0% |
4. The unit market of Dingley Village (Dandenong, Victoria)
‘Outer city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 0.9% | 2.6% | 1.7 percentage points |
| Median weekly rent | $460 | $450 | -2.2% |
5. The house market of Bannockburn (Barwon – West, Victoria)
‘Long commute’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 1.5% | 2.9% | 1.4 percentage points |
| Median weekly rent | $430 | $430 | 0.0% |
6. The unit market of Notting Hill (Monash, Victoria)
‘Outer city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 2.0% | 3.2% | 1.2 percentage points |
| Median weekly rent | $365 | $350 | -4.1% |
7. The house market of Campbellfield (Tullamarine – Broadmeadows, Victoria)
‘Middle city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 1.9% | 3.1% | 1.2 percentage points |
| Median weekly rent | $400 | $380 | -5.0% |
8. The house market of Kingsville (Maribyrnong, Victoria)
‘Inner city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 1.4% | 2.6% | 1.2 percentage points |
| Median weekly rent | $530 | $520 | -1.9% |
9. The unit market of Oak Park (Moreland – North, Victoria)
‘Inner city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 2.7% | 3.7% | 1.0 percentage points |
| Median weekly rent | $410 | $390 | -4.9% |
10. The house market of Ivanhoe East (Banyule, Victoria)
‘Middle city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 2.1% | 3.1% | 1.0 percentage points |
| Median weekly rent | $670 | $650 | -3.0% |
11. The unit market of Airport West (Keilor)
‘Middle city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 2.2% | 3.2% | 1.0 percentage points |
| Median weekly rent | $430 | $430 | 0.0% |
12. The unit market of Bonbeach (Kingston)
‘Outer city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 0.9% | 1.9% | 1.0 percentage points |
| Median weekly rent | $420 | $420 | 0.0% |
13. The house market of Keilor Downs (Brimbank)
‘Middle city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 2.2% | 3.1% | 0.9 percentage points |
| Median weekly rent | $420 | $410 | -2.4% |
14. The unit market of Mordialloc (Kingston)
‘Outer city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 2.2% | 3.0% | 0.8 percentage points |
| Median weekly rent | $420 | $420 | 0.0% |
15. The house market of Mitcham (Whitehorse – East)
‘Outer city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 1.6% | 2.3% | 0.7 percentage points |
| Median weekly rent | $450 | $450 | 0.0% |
16. The house market of Ashburton (Boroondara)
‘Middle city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 1.8% | 2.5% | 0.7 percentage points |
| Median weekly rent | $590 | $580 | -1.7% |
17. The unit market of Parkdale (Kingston)
‘Outer city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 1.4% | 2.0% | 0.6 percentage points |
| Median weekly rent | $440 | $440 | 0.0% |
18. The unit market of Nunawading (Whitehorse – East)
‘Outer city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 2.4% | 3.0% | 0.6 percentage points |
| Median weekly rent | $400 | $395 | -1.3% |
19. The house market of Ivanhoe (Banyule)
‘Middle city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 3.8% | 4.4% | 0.6 percentage points |
| Median weekly rent | $640 | $580 | -9.4% |
20. The unit market of Coburg North (Moreland – North)
‘Inner city’ suburb
| Category | Feb 2021 | Feb 2022 | Change |
| Vacancy rate | 1.7% | 2.3% | 0.6 percentage points |
| Median weekly rent | $440 | $420 | -4.5% |
