Melbourne property: Why Melbourne’s housing crisis will get worse before its gets better

Already a subscriber?Victoria’s competitiveness and prosperity is at risk from a house price surge being fuelled by supply constraints and a return to population growth since the pandemic, the Urban Development Institute of Australia has warned., the institute on Monday released findings that show the average price of a 400-square-metre property in Melbourne’s growth corridors increased by 45 per cent to $855,000 in the five years to June 2023.

“Our competitiveness and prosperity are in jeopardy as demand for housing increasingly outpaces supply, leading to unattainable housing prices and a severely overheated rental market,” Ms Allison said.“Rising cost-of-living pressures and record interest rate hikes have severely diminished consumer buying capacity, seeing more Victorians locked out of the housing market. In turn, we are seeing an increasingly competitive rental market.

“With households required to earn this level of income just to afford housing, Melbourne is losing its attractiveness as a place to live,” Ms Allison said, adding that rents could rise further as moderate income earners are priced out of new homeownership.“Additionally, the misalignment between places of employment and the location of affordable housing options will have significant implications for Melbourne’s economy, the cost of living and commuting.

. And for those on $100,000, there were 49 suburbs where they could buy a unit and 56 where they could purchase a house.

Source: Real Estate Daily Report (realestatedailyreport.net)

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