Breaking into the housing market in Victoria is tough and with a vacancy rate of less than one per cent, finding a rental can be just as hard.
There’s lots of rental housing under construction around the capital city, but new research from Colliers International finds it’s not going to do much to help the crunch.
In the next two years, about 1,500 rental units will be built in the city.
Vacancy rates are only expected to improve slightly to one per cent from the 0.8 of a percentage point.
“It’s going to be a tight market for the foreseeable future, even with the increase in supply of new purpose built product,” managing director with Colliers International Dave Ganong said. “The demand, especially the downtown core and the West Shore, is far exceeding the existing supply, which is why you see vacancy rates sustained at or below one per cent.”
The research finds rental rates are also expected to go up.
