Victoria’s Rental Crisis and Young People

The market’s competitive. There’s limited rentals available, with a record low vacancy rate of 1.0% in Victoria. This creates an increasingly competitive rental market.³ 

There’s housing insecurity. Victoria has the highest rate of month-by-month leases, with 22% of renters facing tenure insecurity. Young renters are also likely to move more often, with many young people spending on average less than one year in a rental property.⁴ 

Living conditions aren’t up to standard. Young people report being too wary of rent increases or evictions to request housing repairs from property managers, meaning many live in unsuitable dwellings.⁵ 

Safety concerns. The lack of affordable housing means young people affected by family violence have fewer options for independent living outside their family of origin.⁶ 

Dwellings are overcrowded. Just over half (51%) of young people experiencing homelessness aged 12 to 24 years are living in severely crowded dwellings.⁷ 

Rents are rising. Melbourne’s average rental is $526 per week, up 11% from the previous year.⁸ A single ‘independent’ young person aged 18 will receive $562.80 per fortnight in Youth Allowance(as of March 2023).² 

New lettings are unaffordable. In the December quarter of 2022, only 11.9% of all new lettings across Victoria were affordable to low-income households, with just 0.9% of one-bedroom dwellings affordable to singles on a Centrelink income.⁹ 

Outcomes-focused solutions like more investment in affordable housing. 

Championing more substantial increases in Commonwealth Rent Assistance, Youth Allowance and Jobseeker that go beyond the 2023 Federal budget announcements. 

A rental income subsidy for social housing providers, to reduce financial barriers when housing young people with lower rental incomes. 

Regulate renters application processes to improve renter’s rights and restrict agents and landlords from accepting unsolicited higher bids. 

Introduce reforms to cap rent rises; currently rents can only be raised once a year, but there’s no limit to how much they’re raised. 

Stricter enforcement of the minimum standards for rental properties, as outlined by Consumer Affairs Victoria, to ensure better quality housing for renters.10 

A Victorian Youth Homelessness Strategy, with a youth housing guarantee that ensures all young people have access to safe and secure housing.