Most evictions linked to nonpayment as rental affordability hits decade low
The number of Victorian renters receiving eviction notices due to unpaid rent has increased fivefold since 2021, according to a new report highlighting worsening housing stress across the state.
The report from Victoria’s Commissioner for Residential Tenancies revealed that nearly 2,000 notices to vacate were issued each week during the 2023-2024 financial year. Non-payment of rent accounted for 95% of eviction notices where the tenant was at fault. The leading reason for no-fault evictions was landlords deciding to sell their properties.
The data also showed a sharp rise in rent increases. In the 12 months to September 2023, 58% of renters experienced a hike in rent, compared to 29.8% the previous year.
Affordability has dropped to its lowest point in over a decade across both metropolitan Melbourne and regional areas, the report found. Renters reliant on government support remain largely locked out of the market. A separate analysis by Anglicare Australia found that of more than 51,000 listings surveyed nationwide, just three were affordable for individuals from low-income households, and none for those receiving Youth Allowance.
Calls for intervention are growing. Tenants Victoria urged the introduction of a “rental fairness formula” to address steep rent hikes and increase protections for renters navigating what it described as “brutal rental market conditions.”
“The demand for services like ours has increased significantly, but limited resources mean we can only respond to one in five calls,” Jennifer Beveridge, chief executive of Tenants Victoria, told The Guardian. “Renters are really feeling the financial strain. They tell us about the dreadful choices that they have to make: going without food, without heating, kids’ supplies, haircuts, and shoes. The constant need to make these choices makes it tough.”
Vacancy rates have remained tight, with greater Melbourne recording a 2% vacancy rate — comparable to pre-pandemic levels. During the pandemic, the rate had exceeded 6% in some areas.
The commissioner’s report also addressed growing concerns around rental conditions, citing frequent reports of substandard properties. While welcoming the state government’s creation of a rental taskforce to tackle these issues, the commissioner noted ongoing challenges for tenants.
Victorian minister for consumer affairs Nick Staikos said the government had introduced more than 130 reforms aimed at improving rental rights and affordability.
“Australia is in a housing crisis, and young people don’t have the same opportunities their parents had – that’s why we’re working to make the property market fairer for renters,” Staikos said.
Among recent reforms are limits on rent increases, stronger rules around bond disputes, a ban on extra application fees, and caps on break-lease charges. The changes, announced in October, will be introduced through legislation over the next year.
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