![\"Caroline](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/7e46122dc6bd4f4bb58681d2545b4610859a141a18b765705a0feabcefe15fb5.png\")
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April 23, 2026 \u2014 5:00am<\/p>\n
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Remove items from your saved list<\/a> to add more.<\/p>\n Save this article for later<\/p>\n Add articles to your saved list and come back to them anytime.<\/p>\n Got it<\/p>\n AAA<\/p>\n Tenants are being asked to fork out an extra $25 a week as Melbourne unit prices reach record highs, even outpacing the asking rent for a typical house<\/a>.<\/p>\n The asking rent for Melbourne\u2019s median unit hit $600 a week in the March quarter, Domain\u2019s latest Rental Report, released on Thursday, shows, up from $575 three months earlier.<\/p>\n<\/p>\n It is the first time on record that asking rents for units have been higher than for houses, which rose to $590 a week \u2013 $10 more than in the December quarter.<\/p>\n Domain chief of research and economics Dr Nicola Powell said a strong rebound in overseas migration and the return of university students had created more demand for units, driving up rents.<\/p>\n \u201cIt\u2019s quite painful for tenants right now. Demand for units has returned much faster than supply can keep up,\u201d she said.<\/p>\n Melbourne\u2019s relative rental affordability to other major capital cities<\/a> could be providing the capital with an \u201caffordability edge\u201d, Powell said. Melbourne has the lowest median house rent among Australia\u2019s capital cities.<\/p>\n<\/p>\n \u201cWhen you compare Melbourne to Sydney or Brisbane, Melbourne stacks up much better financially while still offering high-quality, prestigious universities,\u201d she said. \u201cIt\u2019s a massive drawcard for international residents who specifically want to be in a major city like Sydney or Melbourne.\u201d<\/p>\n Angie Zigomanis, head of data at Quantify Strategic Insights, said rental increases usually happened during the March quarter, following a December slowdown.<\/p>\n \u201c[In December], you have international students that go back home, or even domestic students who finish their course and maybe go back to the country,\u201d he said. \u201cBut then it picks up again in the March quarter because you get a whole new round of students.\u201d<\/p>\n Zigomanis said an increase in migration since the September quarter 2025 had pushed up asking rents across both units and houses.<\/p>\n<\/p>\n \u201cAt the moment, the demand side is pretty strong because we have solid population growth in Victoria,\u201d he said. \u201cWe\u2019ve got strong overseas migration, and we\u2019ve also had interstate migration come back into positive numbers, which had been negative in the immediate post-COVID period.<\/p>\n \u201cWhen people first come here, the first thing they\u2019re going to do is look for something to rent rather than buy. And obviously, we haven\u2019t ratcheted up what we\u2019re building at the moment, so we\u2019re going to be struggling on the supply side.\u201d<\/p>\n For houses, Zigomanis said, the strong growth in rental bonds in Melbourne\u2019s typically more affordable outer suburbs could explain why the median house rent was lower than the median unit rent. <\/p>\n<\/p>\n Glenn Greenfield, a lifelong renter and founder of Renter Rated<\/a> \u2013 a renter review platform highlighting negative and positive experiences \u2013 is looking for another home after a two-year VCAT battle with his landlord to remove a pest infestation.<\/p>\n The 47-year-old, who lives with his daughter in Pascoe Vale, said the stress of the past two years had made him want to move to a new place, and save some money.<\/p>\n But the market is dire: the quality of new builds is worse than the houses built 20 years ago, he said, and the photos used to advertise rentals are out-of-date sale photos. A recent tour of a modern three-storey townhouse required him to use his phone torch.<\/p>\n \u201cWhen we got led by the estate agent, the downstairs was very dark, and I asked if we could switch the lights on, and she said there\u2019s no power,\u201d Greenfield said. \u201cSo we had to use our phone torches to conduct an inspection, and in the bathroom there were razor blades \u2013 like a shaving razor \u2013 on the floor. They just don\u2019t care.\u201d<\/p>\n<\/p>\n Greenfield is looking further north to more affordable suburbs such as Craigieburn or Wollert, but said he needed to balance distance with cost-of-living and fuel prices.<\/p>\n \u201cThere\u2019s no way to win unless you\u2019re a double income or have a lot of housemates,\u201d he said. \u201cHow does a relatively young person save to get into the buying market? It\u2019s impossible.<\/p>\n Damien Patterson, director of policy, advocacy and engagement at Tenants Victoria, said higher rents for units than houses were \u201ca real sign of dysfunction in the housing market\u201d.<\/p>\n![\"Glenn](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/19a67d792e074e7bc5ccd4eb6e5085f9ccf32db9.jpeg\")
Glenn Greenfield is looking for a new rental.Justin McManus<\/p>\n
![\"Fiona](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/cf5ccbefb72575d283ae8cc03151e1fe4480df00.jpeg\")
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