THERE is fear that renters may begin to leave regional Victorian communities as the rental crisis continues.
A recent analysis of rental vacancy rates in regional Victoria conducted by Everybody’s Home, the national campaign for real housing solutions, has indicated that tenants living in regional areas across the state are most vulnerable to rent increases, as landlords look to recover the cost of rising interest rates.
Everybody’s Home spokesperson Kate Colvin said these increases and low vacancy rates would likely lead to renters moving out of their communities.
The Everybody’s Home data showed that Northern Victoria as a whole had a vacancy rate of 0.72 per cent, lower than Gippsland (0.78 per cent) and Mornington Peninsula (0.95 per cent), but higher than North East Victoria (0.47 per cent) and South Western Victoria (0.69 per cent).
It was found that rental prices in Northern Victoria had also risen by 6.2 per cent in the past 12 months.
Ms Colvin said due to the current low vacancy rates and rising rental values, housing options were becoming limited for many families and individuals.
She said this could influence individuals that live in regional areas with low vacancy rates, such as those located in Northern Victoria, to move to locations that provide more variety and choice.
“There are limited options for people who can’t afford to buy that want to stay in their local community,” she said.
Ms Colvin said if families and individuals were to leave, communities would lose workers and valuable members of the community.
“Just because you rent, doesn’t mean you haven’t established deep roots in a community,” she said.
“Renters on low and modest incomes work in the local shops and aged care service, they have kids in local schools, are members of sports clubs, and attend local churches.
“They deserve the same stability as everyone else.”
Ms Colvin said planning for more social and affordable houses was needed now to help ease the rental crisis.
“A dip in construction starts is forecast for next year and that’s a great opportunity for the government to swing in and take up the slack in the industry,” she said.
“The bitter fruit of a decade of housing neglect is with us now and is being unfairly forced on low-income renters. This problem will only get worse if we fail to act.”
Ray White managing director and sales agent Damian Portaro last week spoke to Sunraysia Daily and said it was predicted that rental prices would continue to increase in the Mildura region.
Mildura’s rental values had increased 10.2 per cent since the onset of COVID-19.
“When you have 1.75 vacancy rate, so non-existent houses for rent, you have very strong demand and there is only one thing that happens, prices have to rise because the demand is so strong,” he said.
Mr Portaro said more houses were needed to fix the crisis or rental values would continue to climb, affecting the ability to rent for lower-income families and individuals.
