While suburbs like Inala, Wacol and Acacia Ridge in Brisbane continue to be the most sought after areas when it comes to cheap rent, Melbourne median house rate has hit $400 for the first time.
According to Domain, a new group data shows that it has become unaffordable to rent in one-third of the suburbs for median wage earners. A new research by the Tenants' Union of Victoria reflects how much what used to be affordable suburbs over the past 15 years have changed in and out. Furthermore, the study of the Domain Group data on median weekly house rents reveals that 35 percent or 110 of Melbourne suburbs have become unaffordable in a period of six months.
As a result many household members are forced to seek rental spaces in the borders or shoulder the high rent that is likely more than 30 percent of the average weekly spendable income of around $1,500.
Other suburbs like Oakleigh have median rent rates at $400 per week, while Box Hill is $428 weekly. Next is Bulleen with median rent at $430. The suburbs Pascoe Vale South and Footscray are nearest to the CBD in each direction that offer house tenants a median rent of $400 weekly.
As mentioned earlier, families are forced to find rental spaces in outside of these suburbs. According to Ellen Witte of SGS Economics and Planning, in this situation these families have to deal with extra costs to commute to work, which also puts a strain on the household income. In other cases, the very high rent expense can hamper the children's access to optimal education opportunities. On the other hand, Domain Group chief economist Andrew Wilson believes that rents will continue to rise with the influx of migration and job seekers in the suburbs of Melbourne.
