The reality of renting a house in the Yarra Ranges is slowly dwindling, with rental properties declining and prices skyrocketing in both the urban and regional parts of the shire.
Real estate agents have been seeing a trend of landlords selling investment properties while market prices are high, but the resulting issue means less affordable rentals are available.
Mooroolbark’s Methven Professionals director Geoff Earney said its portfolio of managed rental properties has dropped by five per cent with landlords choosing to sell and cash in a lump sum.
“We have an absolute severe shortage of rental properties and nowhere for the tenants to go to live,” he said.
Although not the primary reason, changes to the tenancy act in 2021 has meant tenants have been given many more rights when it comes to what they can and can’t do at their rental property.
Real estate agents who manage properties all over the shire said sadly it has meant landlords feel powerless and the costs in owning an investment have outweighed the benefits.
Lilydale’s Stockdale and Leggo property consultant Sharyn Manning said this was a trend their team saw across the board last year but could not blame the property owners for wanting to reap the rewards of their investment.
This lack of affordable rentals in the Yarra Ranges has also been analysed by Anglicare’s Rental Affordability Report for 2022.
Across the state, Anglicare found that of the 18,934 private rentals advertised on 19 March only two per cent (371) were suitable for a person or family living on income support and 23.5 per cent of properties (4444) were suitable for a person or family living on minimum wage.
The number of advertised properties in the Yarra Ranges has also decreased from 82 in 2021 to 73 in 2022 and no properties were affordable to someone on income support, while 20 could be affordable for a person on minimum wage.
“Weekly rent in the Yarra Ranges is the highest it’s ever been. The median weekly rent was $455 in March 2022, compared to $430 a year ago,” Anglicare Victoria’s Eastern Region director Shaye Chalmers said.
Mr Earney said not only is the price hike making it challenging for people to stay in the area but the competitive nature of going for a rental is seeing 20, 30 or 40 people inspecting a home.
“There’s lots of people lining up to get through every open for inspection they can for a property and only one will get it, so where do they go?” he said.
“They have to go out of the area, perhaps down Berwick way or Werribee way but it’s a long way from where your family is if they’re already here.”
With more land and cheaper prices in those areas in Pakenham, Berwick and Werribee it’s driving people away from the Yarra Ranges.
“The shortage of land out here is a huge problem as well,” Mr Earney said.
“The cutting down of the normal quarter acre block so that you can put two on it has been very popular, however, they’re starting to run out now.”
Ms Chalmers said while the appeal of living in regional areas has seen some of her clients being pushed “into less accessible areas of the Yarra Ranges” it has also come with unexpected costs.
“Families are also living in houses or units that are too small for them – often due to increasing rental costs and limited options available,” she said.
“Coupled with the rising cost of living, it is harder for our vulnerable clients to make ends meet – many have had to make the difficult choice of skipping meals or switching off the heating in winter, just to keep a roof over their head.”
