<section data-scroll-anchor="false" data-testid="conversation-turn-48" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-23" dir="auto">
Melbourne’s apartment market entered 2026 with renewed momentum, but the recovery is uneven, policy-driven, and increasingly shaped by constrained supply.

According to the RPM Apartments &amp; Townhomes Market Report (April 2026), apartments have begun to outperform detached housing on key metrics,yet that performance is occurring against a backdrop of falling approvals and a tightening development pipeline.

At the end of 2025, Melbourne unit values reached a three-year high of $656,500, recording quarterly growth of two per cent. That figure edged ahead of the 1.8 per cent growth recorded in the house market over the same period, marking a notable shift in relative performance. While modest in absolute terms, the outperformance is significant given the sustained dominance of houses through much of the previous cycle.

This shift has been driven in large part by policy. The federal government’s expanded five per cent Deposit Scheme has had a disproportionate impact on apartment demand, particularly in Melbourne where the $950,000 price cap captures a large share of medium- and high-density stock.

As RPM notes, the scheme “heavily favours medium and high-density dwellings,” effectively accelerating demand in the apartment sector.

The impact is most visible in buyer activity. Victoria recorded more than 43,000 new housing loans in Q4 2025, the highest quarterly volume since mid-2022 and one of the strongest results in over a decade. This lift was broad-based across all buyer types, with first home buyers, owner-occupiers and investors all returning to the market with greater confidence.

This surge in demand has flowed directly into apartment pricing, particularly in Melbourne’s middle and outer rings. Middle-ring unit values reached approximately $757,500, a four-year high, while outer-ring units climbed to a record $650,000. Quarterly growth of 2.9 per cent and 2.5 per cent respectively significantly outpaced both the inner ring (0.8 per cent) and the broader house market.

&nbsp;

<img alt="RPM" data-entity-type="file" data-entity-uuid="4628dde5-ad63-4b03-b18e-77d0f750e2aa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-24%20at%209.23.32%E2%80%AFAM.png?VersionId=ig6mqc7Oz7UaszRuzULrGtLPUxGf4NJC" />

&nbsp;

The divergence between apartments and houses is also being shaped by affordability. Detached housing remains out of reach for many buyers, pushing demand toward apartments as a more accessible entry point into well-located suburbs. This is particularly evident among first home buyers and downsizers, both of whom are increasingly prioritising location, amenity and lifestyle over land size.

At the same time, population growth continues to underpin demand. Victoria added more than 122,000 residents in the year to Q3 2025, with Melbourne attracting both overseas migrants and interstate movers, partly due to its relative affordability compared to other capitals.

&nbsp;

<img alt="Population" data-entity-type="file" data-entity-uuid="49e10567-a8b3-47c3-afbd-290f0bb62c49" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-24%20at%209.22.25%E2%80%AFAM.png?VersionId=.2Drmko4TPh02X55JdF3mIC1EcG0ZfGl" />

However, the most critical factor shaping the apartment market is not demand, it is supply.

Apartment approvals across Greater Melbourne have fallen sharply, signalling a constrained pipeline of future stock. In Q4 2025, just 2,339 apartments were approved, down 20 per cent on the previous quarter and 47 per cent lower than the same period a year earlier. On an annual basis, 11,066 apartment approvals were recorded, an improvement on the previous year, but still well below medium- and long-term averages.

&nbsp;

<img alt="Apartment approvals" data-entity-type="file" data-entity-uuid="12f2e7bc-fe01-40c0-80b5-9e829b279d98" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-24%20at%209.21.56%E2%80%AFAM.png?VersionId=5mnIXkXGoDgIJdAFhA0alm0cSKzEytqZ" />

This decline reflects a broader contraction cycle that has been underway since 2020. As RPM notes, “apartment approvals appear to be sliding back into a downward trend,” with developers increasingly focused on launching and completing existing projects rather than initiating new ones.

The reasons are well understood. Construction costs have risen more than 20 per cent since 2021, driven largely by labour shortages and material price escalation. At the same time, financing conditions have tightened, with lenders requiring higher contingencies and taking a more cautious approach to risk. Combined with recent interest rate rises, these factors have made feasibility more challenging, particularly for higher-density projects.

This dynamic is creating a disconnect in the market. Demand for apartments—particularly at the more affordable end—is strengthening, while the pipeline of new supply is weakening. In the short term, this may limit the number of new projects coming to market. Over the medium term, however, it is likely to support price resilience and potentially further outperformance relative to houses.

There are some signs of policy-driven supply response. The introduction of Victoria’s Mid-Rise Code, which streamlines approvals for four- to six-storey developments, is expected to improve delivery in well-serviced middle-ring locations. However, this is unlikely to materially offset the broader decline in apartment approvals in the near term.

Despite the positive momentum at the end of 2025, the outlook for 2026 has become more complex. Two interest rate rises early in the year have already impacted consumer confidence, while broader cost pressures, particularly energy and fuel, are feeding through to construction and development costs.

“Victoria’s built form market ended 2025 on a high, but early 2026 rate rises quickly reversed the momentum,” RPM notes.

The implication is that while apartments are currently outperforming houses, the trajectory of that outperformance will depend on how these competing forces evolve. Policy support and affordability are clearly working in favour of apartments, but constrained supply and rising costs are likely to shape the pace and nature of future growth.

What is increasingly clear is that apartments are playing a more central role in Melbourne’s housing market. As population growth continues and affordability pressures intensify, higher-density housing is becoming not just an alternative to detached homes, but a primary solution to the city’s housing needs.
</section>

Joel Robinson

Units lead Melbourne price growth as apartments outperform houses: RPM

Brunswick is set for some of its largest apartments ever delivered with the upcoming new development Frith &amp; Howarth, where the apartments are around 20 per cent larger than what has come before it in the sought-after suburb.

Developer Young Group focused its design on Frith &amp; Howarth around size and scale, but within a boutique building, to create a mini neighbourhood within the mid-rise development. There are just 24 apartments in the mid-rise building on Victoria Street, a short walk to Brunswick Station and the cafe and dining strip along Sydney Road.

“We spent hours comparing what’s currently on the market so we could offer genuine points of difference,” Young Group says, pointing to room sizing, storage, and functional planning as key drivers behind the design.

All of the two-bedroom apartments in the building have been snapped up, with just the large three- and four-bedroom apartments, with the biggest floorplans and best outlooks, remaining.

[smartcode_project:default project_id=134317 project_image_fid=354139]

Apartments open directly into open-plan living zones where full-height glazing draws light deep into the apartment. Sliding doors extend the space outward to terraces, many oriented toward the adjacent park or back toward the city skyline.

Kitchens sit within this central space, anchored by sculptural island benches that reference the building’s faceted exterior language. Storage is integrated across multiple layers, overhead cabinetry, concealed joinery, and, in larger configurations, dedicated sculleries or butler’s pantries.

[smartcode_project:default project_id=134317 project_image_fid=354137]

The penthouse is the largest ever offered in Brunswick. The penthouse measures nearly 400 sqm all-up, with 242 sqm of internal space complimented by a further 149 sqm of terraces.

It spans the whole top floor and has four bedrooms, four bathrooms, and parking for four cars.

[smartcode_project:default project_id=134317 project_image_fid=354133]

Low maintenance resident amenity has been created in the form of a landscaped rooftop, complete with&nbsp;vegetable plots, outdoor cooking areas, and aflresco dining spaces, designed as a place for neighbours to gather outside of their homes.

“To enable connection with neighbours, generous rooftop gardens with communal spaces and outdoor cooking areas offer a chance to develop a sense of community,” says John Patrick, Principal of <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick Landscape Architects</a>.&nbsp;

“Private open spaces with a selection of native and exotic plantings and gorgeous city views on the rooftop create a high-end aesthetic, with a low maintenance lifestyle. The perfect balance, so that residents can enjoy a serene living space.”

[smartcode_project:default project_id=134317 project_image_fid=354134]

Sustainability is embedded at both the building and apartment level. <a href="https://www.apartments.com.au/new-apartments/frith-howarth-288-290-victoria-street-brunswick-vic-3056">Frith &amp; Howarth</a> is one of only a small number of all-electric residential developments in Brunswick, supported by solar infrastructure, EV-ready parking, and high-performance glazing. These measures sit alongside less visible systems such as rainwater reuse and high-grade insulation, reducing long-term operational costs while maintaining consistent internal conditions.

Positioned within walking distance of Brunswick Station, Route 96 trams, and established retail along Sydney Road and Barkly Square, the development balances access to transport with proximity to open space, a combination that has become increasingly difficult to secure in inner-city sites.

“These exquisite homes are nestled in a culturally diverse neighbourhood, with parklands and nature right on your doorstep,” says Young Group.

[smartcode_project_cta:default project_id=134317]

Frith & Howarth to deliver Brunswick’s largest apartments

<a href="https://www.apartments.com.au/new-apartments/prince-parade-by-mirvac-brunswick-701-park-street-brunswick-vic-3056">Prince &amp; Parade</a> in Brunswick is entering its final stages of construction, with the removal of the project’s last tower crane and the unveiling of the building’s full façade marking a significant milestone ahead of completion this coming spring.

The Park Street development, designed by <a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a>&nbsp;and Mirvac Design with landscaping by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, is now largely structurally complete, with internal works progressing across the 169-apartment project opposite Princes Park.

<a href="https://www.apartments.com.au/builders/mirvac-construction">Mirvac Construction</a> Project Manager Sam Payne said the latest update reflects a transition from structure to refinement.

“Since our last update, all façade panels have been installed and the scaffolding and gantry has come down, unveiling the building in its full form for the very first time,” Payne said.

“A significant milestone was reached this month with the removal of our final tower crane, signalling the completion of major structural works and a pivotal step forward in the building’s transformation.”

[smartcode_project:default project_id=4802 project_image_fid=366856]

Apartments are now well advanced internally, with joinery completed to level eight and tiling to level six, alongside the delivery of a prototype apartment used to set the benchmark for the remaining residences.

This next phase coincides with the release of a completed furnished residence, styled by MCM House, and the introduction of private buyer tours, giving purchasers a clearer understanding of the finished product ahead of settlement.

<a href="https://www.apartments.com.au/new-apartments/prince-parade-by-mirvac-brunswick-701-park-street-brunswick-vic-3056">Prince &amp; Parade</a> will comprise 169 one to four-bedroom apartments, with completion targeted for early spring. Interiors focus on natural materials and muted tones with two design schemes, while kitchens and bathrooms adopt a restrained palette anchored by stone, timber and textured finishes.

Bates Smart Director Jeffery Copolov said the project reflects a shared design direction centred on liveability and sustainability.

“Blending Mirvac and Bates Smart’s focus on wellness and sustainability, <a href="https://www.apartments.com.au/new-apartments/prince-parade-by-mirvac-brunswick-701-park-street-brunswick-vic-3056">Prince &amp; Parade</a> offers a new kind of conscious, elevated living in Melbourne’s inner north,” Copolov said.

<a href="https://www.urban.com.au/new-apartments/prince-parade-by-mirvac-brunswick-701-park-street-brunswick-vic-3056">Prince &amp; Parade</a> presents Mirvac's third parkside collaboration with&nbsp;<a href="https://www.urban.com.au/architects/bates-smart">Bates Smart</a>&nbsp;in Victoria.&nbsp;Their previous collaborations delivered two of the city’s landmark apartment buildings: The Melburnian opposite Kings Domain and The Eastbourne on Fitzroy Gardens.

[smartcode_project:default project_id=4802 project_image_fid=366857]

A key focus of the development is its landscape-led amenity offering. The central courtyard, spanning around 600 sqm, will feature established trees and planting grown off-site, alongside communal lawns and seating areas designed for everyday use.

Development Manager James Gardner said the outdoor spaces are central to the project’s lifestyle positioning.

“<a href="https://www.apartments.com.au/new-apartments/prince-parade-by-mirvac-brunswick-701-park-street-brunswick-vic-3056">Prince &amp; Parade</a> isn’t just a home, it’s a complete lifestyle offering, and the resident amenity is just one example of the elevated living experience the soon-to-be-complete building will be known for,” Gardner said.

The courtyard connects to a series of shared indoor and outdoor spaces, including a residents’ lounge, dining room, library and secondary west-facing garden area, designed as extensions of the apartments themselves.

Located directly opposite Princes Park and around four kilometres from the CBD, the development places residents within one of Melbourne’s most established inner-north precincts, with access to open space, transport and the retail and hospitality offerings of Brunswick and Carlton.

With façade works complete and landscaping and final finishes now underway, <a href="https://www.apartments.com.au/new-apartments/prince-parade-by-mirvac-brunswick-701-park-street-brunswick-vic-3056">Prince &amp; Parade</a> is moving into its most active construction phase, with permanent services and external works to be finalised in the coming months ahead of completion in spring.

[smartcode_project_cta:default project_id=4802]

Mirvac’s latest landmark, Prince & Parade Brunswick, enters final construction phase

Boutique Perth developer ADC has unveiled its latest project.

The developer, which focuses on bringing apartments to some of Perth's most premium inner-city and riverside suburbs, has launched <a href="https://www.apartments.com.au/new-apartments/mos-lane-mosman-park-46-manning-street-mosman-park-wa-6012">Mos Lane</a>, 68 luxury apartments and townhouses in the heart of <a href="https://www.apartments.com.au/developments/mosman-park-wa-6012">Mosman Park</a>.

<section data-scroll-anchor="true" data-testid="conversation-turn-124" data-turn="assistant" data-turn-id="request-69e027bc-1530-839b-a316-e9dad2cbd4d9-34" dir="auto">
Alongside the one-, two-, three- and four-bedroom apartments, the development will also include five two-level townhomes and two luxe penthouses. ADC is also introducing a significant retail offering for residents through Mos Lane Village, which will feature a wellness studio, fish and chips shop, barber, and florist, adding a layer of amenity not typically found in the predominantly residential Mosman Park area.

Construction has already commenced on the project, which sits just a short walk from the Swan River, Mosman Park Bowls Club, and Mosman Park Golf Course.

House Agency Directors Tom House and Lachlan McDonald say they are fielding the majority of buyer interest from local downsizers, as well as buyers with a long-standing affinity for Mosman Park.
</section>

[smartcode_project:default project_id=148957 project_image_fid=364591]

Mos Lane will comprise two buildings; Samson House and Manning House, which have been designed by&nbsp;<a href="https://www.apartments.com.au/architects/nelson-koo">Nelson + Koo</a>, an emerging design consultancy specialising in the masterplanning and design of mixed use places and spaces.

The two buildings adopt distinct architectural responses to their surroundings. Manning House references the strong roof forms of nearby homes, with floorplates oriented to maximise light and long-range views, while Samson House is organised around a central atrium designed to bring daylight deep into the building and create a greater sense of openness.

At ground level, the inclusion of five townhomes introduces a typology more commonly associated with Mosman Park’s established streets, each with private courtyards and direct frontage, offering a transition between traditional housing and apartment living.

[smartcode_project:default project_id=148957 project_image_fid=364103]

Interiors have been led by Melbourne-based Hecker Guthrie, with an emphasis on practical, long-term liveability. Residences incorporate sculpted joinery, generous storage and flexible multi-purpose rooms that can adapt to changing household needs, whether for working from home, guest accommodation or additional living space.

Material selections draw on a restrained palette of textured stone, timber and neutral tones, with options for lighter or darker schemes. Detailing such as fluted glass, full-height joinery and integrated appliances is intended to balance functionality with a more refined residential finish.

Outdoor spaces are a consistent feature across the development, with balconies and terraces designed for dining and entertaining, and larger apartments incorporating outdoor kitchens. Orientation has been considered to allow residents to choose between morning or afternoon sun, while mature street trees and landscaped communal areas contribute to a softer streetscape.

[smartcode_project:default project_id=148957 project_image_fid=364107]

Shared amenities are positioned to support both day-to-day convenience and occasional use. These include a private dining room with a caterer’s kitchen, alfresco entertaining areas, and a bookable guest suite for visiting friends and family. Additional practical features such as a resident workshop, storage facilities, car and pet wash areas, and concierge-style services for cleaning and dry-cleaning collection reflect a focus on usability.

Positioned between the Swan River and Cottesloe Beach, and within reach of schools such as Iona Presentation College and St Hilda’s Anglican School, the development is aimed at a broad buyer group, from downsizers seeking a lower-maintenance alternative to larger homes, through to local residents looking to remain in the area in a different housing format.

Mos Lane represents one of the more significant additions to Mosman Park’s limited pipeline, combining new housing supply with a village-style retail centre in a suburb where opportunities for large-scale redevelopment are relatively constrained.

[smartcode_project_cta:default project_id=148957]

Living village precinct set for Mosman Park as ADC launches Mos Lane

An entity linked to I&amp;D Group Founder Ivan Filipović has filed plans for a new residential development at 188–202 Swan Street in Cremorne, targeting a prominent site within the tightly held Swan Street activity corridor.

The proposal seeks to redevelop the consolidated Swan Street landholding into a <a href="https://www.apartments.com.au/new-apartments/188-202-swan-street-cremorne-vic-3121">high-density mixed-use project</a>, replacing a series of existing commercial buildings with a significantly scaled residential outcome. The planning submission positions the development as a response to increasing demand for housing in well-connected inner-urban locations, particularly within established activity centres.

Plans outline the construction of a 14-storey building delivering 165 apartments above a four-level basement, alongside a ground-floor retail and commercial offering designed to activate the streetscape. A key feature of the scheme is a new north–south pedestrian link connecting Swan Street to Railway Place, intended to “enhance permeability and provide an active, publicly accessible connection through the site.”

<img alt="First Look: Plans lodged for Ivan Filipović-linked Cremorne apartment project on Swan Street" data-entity-type="file" data-entity-uuid="7332a8f8-dd2b-483d-b86e-320658838c84" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/cremorne.png?VersionId=cXm8vAaRdHh.LpYVbecrRkjckgu9mtAF" />

The development will retain part of the existing built form at 198–200 Swan Street, while the remainder of the site will be cleared to accommodate the new structure. Basement levels will provide 196 car spaces and 113 bicycle spaces, with vehicle access from Railway Place. Communal amenity is distributed across the building, including a shared outdoor area on Level 1 and a rooftop terrace for residents.

Ground level uses include retail tenancies fronting Swan Street and the pedestrian link, a residential lobby, and a flexible commercial space positioned to support community-oriented uses. The planning report notes this space “could be offered as a flexible space within the development for community groups,” supporting short-term or longer-term occupancy arrangements.

<img alt="First Look: Plans lodged for Ivan Filipović-linked Cremorne apartment project on Swan Street" data-entity-type="file" data-entity-uuid="8208bf7b-cc67-485d-ad0f-1d73a74c907f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/cremorne%20lane.png?VersionId=69ctjC0txXv0zCHy7qQUpJyGwvPAT7gw" />

The site sits within the Swan Street Major Activity Centre, surrounded by a mix of retail, hospitality, and emerging residential development, and directly opposite tram services along Swan Street. East Richmond Station is located to the south, providing strong rail connectivity, while the broader Cremorne precinct continues to evolve as a mixed-use hub.

I&amp;D Group, founded by Ivan Filipović, is regarded as one of Victoria’s largest formwork contractors, partnering with major construction firms across large-scale public and private developments. The Swan Street proposal signals a move into development-backed opportunities tied to strategic inner-city sites.

First Look: Plans lodged for Cremorne apartment project on Swan Street

Private Renting

<html><body>
EXPERT OBSERVERS
In low-rent outer suburbs, almost one in six households could not afford to keep their house cool and went without meals.<a class="source" href="https://www.shutterstock.com/image-photo/ashkelon-july-30a-poor-man-looks-116883439?src=pz36NnyfTHFCIB6ziBOFUg-1-1&amp;studio=1"> </a>
Private renting continues to expand at the expense of home ownership, newly released <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4130.0%7E2017-18%7EMedia%20Release%7EMore%20households%20renting%20as%20home%20ownership%20falls%20(Media%20Release)%7E10" target="_blank">ABS statistics</a> show. More than one in four Australians (27%) are now tenants of a private landlord (2017-18). Only one in five lived in private rental housing in 1997-98.
<a href="https://www.tandfonline.com/doi/full/10.1080/14036096.2018.1467964" target="_blank">Our research</a> looked at private renters in middle and inner suburbs and low-rent outer suburbs (200 private renters in each area, 600 in total) in Sydney and Melbourne. Geographical differences in income sources and deprivation rates might be expected. However, the variations in <a href="https://www.sprc.unsw.edu.au/media/SPRCFile/Report12_07_Deprivation_and_exclusion_in_Australia.pdf" target="_blank">financial stress</a> revealed by our study were startling. In low-rent outer suburbs, much higher proportions, for example, went without meals or had to pawn or sell something to get by.
<h2>Household incomes</h2>
Not surprisingly, tenants in the inner/middle suburb areas and the (low-rent) outer areas had a very different profile of income sources, as Table 1 shows.
<a href="https://images.theconversation.com/files/285969/original/file-20190729-43109-1yvajhm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/285969/original/file-20190729-43109-1yvajhm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Author provided
In areas with medium and high rents, wages or salaries were the main source of income for more than four out of five respondents (83%). In the outer suburban, low-rent areas, this was true for barely half (56%). A third relied mainly on state pensions or benefits.
In more than a quarter of tenant households (28%) in low-rent areas at least one member was an unemployed job-seeker. Only 8% of households in the medium/high-rent areas included an unemployed member.
Finally, once again indicating the typically more deprived situation of the outer suburb group, a much greater proportion of these tenants, 62%, received Commonwealth Rent Assistance compared to 21% in the other areas.
<h2>Signs of financial stress</h2>
Respondents were asked: “Over the past year, have any of the following happened to you/your household because of a shortage of money?”
We <a href="https://www.tandfonline.com/doi/full/10.1080/14036096.2018.1467964" target="_blank">found levels of financial stress</a> varied greatly between areas. Among low-rent (outer suburban) tenants almost two-thirds (63%) experienced at least one of the eight possible financial stress indicators listed in Table 2. That’s twice the proportion for the inner/middle-area cohort (32%).
Benchmarking both of these figures against the nationwide rate of 20% (based on the <a href="https://www.abs.gov.au/AUSSTATS/subscriber.nsf/log?openagent&amp;HECS%20additional%20tables.xls&amp;4670.0&amp;Data%20Cubes&amp;4C08051315A91B1ACA257C6F000EC23C&amp;0&amp;2012&amp;24.02.2014&amp;Latest" target="_blank">all-tenure national comparator on the incidence of financial hardship</a>) illustrates the pervasiveness of economic stress among private renters in all areas of our major capital cities. But in outer suburban low-rent areas of Sydney and Melbourne the risk of financial hardship is more than three times the national norm among tenants. <a href="https://www.tandfonline.com/doi/full/10.1080/08111146.2016.1272449" target="_blank">Our earlier research</a> also noted this.
Comparing the two tenant groups revealed statistically significant differences on every financial hardship indicator – see Table 2.
<a href="https://images.theconversation.com/files/285972/original/file-20190729-43114-iry4ai.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/285972/original/file-20190729-43114-iry4ai.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Author provided
Strikingly, almost one in six households living in low-rent areas went without meals. A similar proportion had to pawn or sell something to get by.
One in three tenants in these areas turned to family and friends for financial help. Almost one in four (23%) sought help from a welfare or community organisation.
Exposure to multiple forms of financial stress indicators was also much greater in low-rent areas. One in five (19%) tenants here reported enduring four or more financial stress indicators versus 6% in medium/high-rent areas. For households in this position, damaging impacts on their quality of life and probably <a href="https://www.tandfonline.com/doi/full/10.1080/02673037.2017.1344202" target="_blank">physical and mental health</a> are likely.
<a href="https://images.theconversation.com/files/285974/original/file-20190729-43114-1cszm0t.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/285974/original/file-20190729-43114-1cszm0t.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Author provided
<h2>A common theme to financial stress</h2>
We found that being reliant on government benefits was associated with multiple indicators of financial stress, irrespective of area. More than one in three (37%) such households experienced four or more of the financial stress indicators. Alarmingly, poverty resulted in 26% of this grouping going without meals in the last year.
Employment status was a significant factor irrespective of area. In households where a household member was either looking for work, out of the workforce or retired, 27% of these households had four or more financial stress indicators. In households where at least one person was employed full-time, only 5% had four or more stress indicators.
The ongoing trend of increasing housing cost pressures on lower-income Australians over the past decade provides the context for the high incidence of financial stress, particularly among tenants in low-rent areas of Sydney and Melbourne. <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4130.0%7E2017-18%7EMedia%20Release%7EMore%20households%20renting%20as%20home%20ownership%20falls%20(Media%20Release)%7E10" target="_blank">Latest ABS data</a> reveal that, for the least affluent fifth of households, typical spending on housing increased from 23% of income to 29% over that period. In contrast, typical spending on housing by the top fifth was unchanged at 10%.
<h2>The case for increasing benefits</h2>
Our study brings home that <a href="https://www.publish.csiro.au/book/7269/" target="_blank">everyday life is an enormous battle</a> on various fronts for many benefit-reliant and other low-income tenants in Sydney and Melbourne. Even if they can find a tenancy in a low-rent area to keep housing costs down, their likelihood of after-housing poverty, including <a href="https://www.thefifthestate.com.au/columns/spinifex/energy-poverty-urgently-end-2/" target="_blank">energy poverty</a>, is high.
At the most extreme end of the scale are the one in five tenants in the outer low-rent areas (one in ten across all three areas) who experienced severe financial stress (four or more indicators of financial stress). After paying for their housing, many of them lack money for essentials.
Being located on the urban fringe, and therefore often remote from services and/or employment, compounds such hardship. Not surprisingly, the incidence of financial stress is highest among government benefit recipients. This finding highlights the urgent need to increase Commonwealth Rent Assistance to offset some of their housing costs, and also to increase key income support payments, such as <a href="https://www.acoss.org.au/wp-content/uploads/2018/03/Raise-the-Rate-Explainer-1.pdf" target="_blank">Newstart and the Disability Support Pension</a>.<img src="https://counter.theconversation.com/content/120427/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/alan-morris-13337" target="_blank">Alan Morris</a>, Research Professor, <a href="http://theconversation.com/institutions/university-of-technology-sydney-936" target="_blank">University of Technology Sydney</a>; <a href="https://theconversation.com/profiles/hal-pawson-147969" target="_blank">Hal Pawson</a>, Associate Director - City Futures - Urban Policy and Strategy, City Futures Research Centre, Housing Policy and Practice, <a href="http://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>; <a href="https://theconversation.com/profiles/kath-hulse-228874" target="_blank">Kath Hulse</a>, Research Professor, Centre for Urban Transitions, <a href="http://theconversation.com/institutions/swinburne-university-of-technology-767" target="_blank">Swinburne University of Technology</a>, and <a href="https://theconversation.com/profiles/violet-xia-781289" target="_blank">Violet Xia</a>, Research Associate, <a href="http://theconversation.com/institutions/university-of-technology-sydney-936" target="_blank">University of Technology Sydney</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/private-renters-are-doing-it-tough-in-outer-suburbs-of-sydney-and-melbourne-120427" target="_blank">original article</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Private renters are doing it tough in outer suburbs of Sydney and Melbourne

<html><body>
The Victorian government’s plan for major rental reforms could turn away landlords from renting, and inadvertently lead to a surge in short stays such as Airbnb in Melbourne, says a leading strata management body. 
A response from the state government on short stays following lengthy public consultation is due on December 8, and the proposed new rental laws once again highlight the need to get short stay regulation right, according to Strata Community Australia (Vic) — the peak industry body for strata management in Victoria. 
SCA general manager Rob Beck says rightly or wrongly, stronger tenant rights could see landlords review how they use their investment properties. 
“Key proposals like the removal of no pet clauses in rental agreements, a cap on maximum rental bonds and new protections to make it easier for renters to make minor modifications to the property are ones which will likely make owners think long and hard about whether they want to keep renting or not,” said Rob Beck. 
Landlord insurance will go up after the Andrews' government pet policy for tenants is introduced in Victoria next year.
Emphasizing the need to regulate short stays, Beck said it wouldn’t be a surprise to see a shift from investor owners towards short stays if the proposals announced for new rental laws are brought into effect, and that this raised “the importance of having short stay regulation in place to new levels”.
Beck says short stays present a unique challenge for strata communities to manage compared to leasing arrangements, and SCA (Vic) wanted regulations to allow strata schemes have better control over this issue. 
More than 1.6 million Victorians live in strata properties, so potentially a huge number in Melbourne could be impacted by a spike in short stays, according to Beck.
“What we want to see as part of the regulations delivered by State Government are measures like the ability for strata schemes to create rules to regulate short stays, and the ability to recover costs such as any damage or any increased proportion of strata fees. 
“These would work to make strata schemes better able to manage these stays.” 
“Provided the right regulatory framework exists, short stays have a place in Victorian strata communities, and it will be perfect timing ahead of the summer period, for the State Government to deliver laws for the busy years ahead.” 
 
</body></html>

jonathanchancellor-7SQnKwU6yx

Victoria's new rental reforms could trigger surge in short stays: Strata body

<html><body>
GUEST OBSERVER
<a href="https://theconversation.com/housing-still-out-of-reach-for-many-even-as-rents-fall-in-post-boom-western-australia-76461" target="_blank">High rents</a> and <a href="https://theconversation.com/the-insecurity-of-private-renters-how-do-they-manage-it-77324" target="_blank">short-term rentals</a> are driving people to organise themselves to share rooms with strangers in order to live in the city. Room sharing outside a family environment is also occurring in some professions. This includes airline stewards and submariners, nurses on shifts, or hospitality workers in remote or seasonal locations, to name a few.
There are precedents where this arrangement is not unusual. Youth and backpacker hostels offer room sharing as a budget option.
In the cases of the workers above, however, the roomies are part of an organisation and are colleagues. This ensures some vetting has taken place and that their conduct is expected to be in keeping with their paid position and contract.
Youth hostels have management to handle complaints and to keep an eye on things. But what about when you are sharing a room and found your roomie through a website? Who is in charge? And how do you really know with whom you are sharing?
City living costs are driving people to organise themselves to share a room with strangers so they can live in their required location. It’s harder than ever to afford your own bedroom to sleep in.
Various websites list hundreds of offers to share rooms in central Sydney. Beds are available from about $150 to over $230 a week. Room sharing also happens in suburbs like Double Bay, Mossman or Marrickville.
(Picture above) “Looking for one girl to share a master room with another 3 girls.” Screenshot from Gumtree ad, August 19 2017, 11:58 , Author provided Christian Tietz, UNSW
A recent article, “How short-term rentals are making Sydney’s housing crisis worse”, calculates that about 6,000 properties are removed from the rental market and offered to higher-paying tourists through “sharing economy” sites like Airbnb. We have an indication what the potential tenants who can’t afford to rent a flat anymore are doing – they are room sharing. I estimate thousands of people are room sharing right now in the inner city.
Exceeding capacity causes many problems
Overcrowded apartments, beyond interfering with the amenity of strata owners, have a number of other implications. One is that these packed living arrangements raise basic health concerns. Historically, <a href="https://www.history.com/topics/tenements">19th-century New York tenements</a> come to mind. How are facilities like bathrooms and toilets – the <a href="https://researchdirect.uws.edu.au/islandora/object/uws:20120">health hardware</a> – going to hold up when used by multiples of the occupants they were originally designed for?
In Australia today, we know relatively little about the extent of chronically overcrowded housing. But research has looked at its impact on those Indigenous householders for whom it’s a fact of daily life. In some cases, up to five people share one bedroom and up to 30 people use the services of one house.
It’s not because they like it, but because there are not enough houses that <a href="https://www.researchgate.net/publication/249879335_This_Is_Not_a_Pipe_The_Treacheries_of_Indigenous_Housing">perform well</a>. Product selection is not fit for purpose and goes hand in hand with a lack of maintenance. <a href="https://www.bshf.org/world-habitat-awards/winners-and-finalists/housing-for-health-programme/">Award-winning research</a> shows this makes it virtually impossible for these householders to carry out basic <a href="https://www.healthabitat.com/the-healthy-living-practices">healthy living practices</a>.
Appliances, fittings and fixtures are engineered to cater to household, commercial, industrial or military performance demands. Fit-out quality selection has direct implications on product life and therefore performance. If these products fail because they are not suitable, this has impacts on <a href="https://www.propertyobserver.com.au/www.health.nsw.gov.au/environment/Publications/housing-health.pdf" style="font-size: 12.16px;">health and wellbeing</a>.
The research shows that this is not the fault of the residents, Indigenous or otherwise. Now these <a href="https://www.propertyobserver.com.au/healthabitat.com/what-we-do/what-the-housing-data-reveals/why-the-houses-need-fixing">well-documented</a> issues are being reproduced in dense urban settings.
Who is going to repair the cheap and non-compliant fixtures when they fail? The poor occupants? What kind of replacements can be expected? High-quality commercial fittings to suit the 500% higher use, or cheap replacements that will predictably fail again in due time?
<h2>Can a shared room be home?</h2>
Lack of personal space and privacy are other problems. The images on the websites clearly demonstrate practical day-to-day concerns. Where do you store your things? There is no existing furniture product category that meets the requirements of sharing with strangers.
A seasonal worker in the Snowy Mountains told me the workers left damp clothing lying on the floor between their bunks. But even if you can hang your things up somewhere, how do you ensure they are still there when you come home? Internal doors generally don’t have key locks and nor do cupboards. Tenants can’t even hang a picture, so how can they secure their space?
Ikea offers furnishings for small flats and some of their products are thoughtfully designed to make small spaces more effective. But they don’t have products for these room-share settings. Renting means you are not allowed to drill holes to install shelves or even hooks.
It appears that the precarious life of the roomie, who lacks a sense of security, stability, privacy, safety and the ability to control their living space, meets the Australian Bureau of Statistics (ABS) <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/4922.0Main%20Features22012?opendocument&amp;tabn">definition of homelessness</a>. A bed alone does not make a home. <img src="https://cdn.theconversation.com/files/188693/width754/file-20171003-31655-1gpt5yk.JPG" alt="">
Private life in public space? Image by C. Tietz, Author provided
<hr>
<a href="https://theconversation.com/profiles/christian-tietz-120703" style="font-size: 12.16px;">Christian Tietz</a>, Senior Lecturer in Industrial Design, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/room-sharing-is-the-new-flat-sharing-84359" target="_blank">original article</a>.
</body></html>

pc-iUQkvULHPU

Room sharing is the new flat sharing

<html><body>
<img src="https://counter.theconversation.edu.au/content/77324/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
A growing proportion of Australian households depend on the private rental sector for accommodation. This growth has occurred despite substantial insecurity of tenure under the law, unlike other countries with high private rental rates, such as Germany. 
Our newly published research on the impacts of long-term or even lifelong insecurity on Australian private renters found their responses range from lack of concern to constant fear and anxiety.
So, how many people are affected? Back in the 1990s about one-fifth of us rented our homes from private landlords. Now this has swelled to more than one-quarter. 
Historically, renting was usually a transitional step in the life cycle. Most people rented for a while and eventually bought a home. 
While this housing pathway is still dominant, a growing number of Australians cannot make this transition. At least one in three private renters are long-term private renters (ten years or more). This equates to at least one in 12 households.
Australian households rent accommodation under a regulatory framework that provides little protection against landlord-instigated “forced moves” or untenable rent increases. The initial written agreement/lease rarely extends beyond a year. Once it ends, the tenancy typically shifts to a “periodic” basis, and notice to vacate can be given without reasons.
The period of notice ranges from 42 days to 26 weeks – depending on the state or territory. Thus, beyond the initial lease, all private tenants are subject under the law to ongoing insecurity.
Drawing on 60 in-depth interviews, we explored the impacts of this de jure housing insecurity on long-term private renters in different housing markets (low, medium and high rent, with 20 interviews in each) in Sydney and Melbourne. We identified three typical responses to ongoing insecurity:
<ul>
<li>
incessant anxiety and fear;
</li>
<li>
lack of concern; and
</li>
<li>
concern offset to an extent by economic/social capital, with renting sometimes seen as the only means of living in a desired area. 
</li>
</ul>
We discuss these responses in turn.
<h2>Incessant anxiety and fear</h2>
For one group of interviewees, the insecurity was a persistent source of stress. They were constantly anxious about the possibility of being asked to leave their homes or incurring an untenable rent increase. 
Low-income interviewees in the low-rent outer suburban areas had limited economic and sometimes social capital. A notice to vacate invariably caused great anxiety as they had minimal resources to find alternative accommodation. 
Interviewees solely reliant on government benefits for their income were especially vulnerable. Frieda, 40, a single parent with five children, described her perceptions and experiences:
"At any minute I can get the letter to say, ‘Sorry, but you’ve got to move’ … The last house before this one … was supposed to be a long-term but he decided to sell that house. And then we got [another] one … and then [the owners] wanted the house back … We got notice [to vacate] but [were] still trying to, you know, find somewhere … For a while there, I was thinking we’ll be out on the street."
Nigel, 35, lived alone in a low-rent area in outer western Sydney. He had been receiving workers’ compensation, but when interviewed relied entirely on Newstart for his income. He was confident that his landlord would not ask him to leave, but needed all his income to pay his rent. This was a source of intense insecurity and he was not coping.
"I’m getting $661 a fortnight, my rent is $660 [a fortnight], so if it wasn’t for friends, you know … Stress is gone beyond a joke … You don’t know what you’re going to do the next day."
Christine, 57, also depended on Newstart for her income. She had lost her job a couple of years earlier after falling ill. Fear and anxiety were woven into her comments:
"A renter – you’ve always got that fear that you’re not going to have a roof over your head … Yes, I’ve been here 16 years, but you never know. The house can be sold and new owners can say, ‘No, we want you to go.’ You don’t have money for a bond for another premises or, you know, Housing Department can’t help you because you’re not what they consider to be [in] an urgent, desperate situation."
<h2>Not a concern</h2>
At the opposite end of the spectrum were interviewees who had deliberately chosen long-term private renting and were unconcerned about the possibility of a landlord-instigated forced move. “Renters by choice” tended to be single people or couples without children who lived in high-rent areas. They usually had ample economic and social capital and saw the flexibility associated with renting as an advantage. 
Sarah was living in a high-rent area in inner Melbourne:
"And I do have enough money to buy quite a nice apartment, but I’d rather use the interest and the share money [dividends from shares] and stuff to travel."
Angela and her partner lived in the same area. They had no children and preferred not having a lease:
"So the insecurity doesn’t bother me … It’s more to do with my freedom within that. It means that I can just leave whenever I want if I want to."
Astrid felt totally at ease with her long-term renter status in high-rent inner Sydney. In her late 30s and single, she had a reasonable income and strong social capital. She had rented for all her adult life:
"It doesn’t bother me [being asked to vacate] … If they come and say they’re going to sell, well, there’s a reason. It was meant to be, so yeah … There’s always somewhere to stay. So it suits my lifestyle. I wouldn’t want to buy anything even if I had the money."
<h2>Moderate concern</h2>
Interviewees in high and medium-rent areas were typically in a different position to tenants in low-rent areas. Their economic capital enabled them to rent (but not buy) in an area with good public schools and amenities, and to move if need be.
However, they were reluctant long-term renters and troubled by their housing insecurity. This was especially so if they had school-going children. 
Moira (high-rent area, Sydney), married with two children and in her mid-40s, was pleased with her rental situation. She paid an unusually low rent for her three-bedroom apartment. Alongside the area’s high-quality amenities, the quality of the public schools was a major drawcard.
However, the ever-present possibility of having to vacate was a concern:
"The fact that you don’t know how long you’re going to be there for and, you know, that was a massive thing when we were choosing a school … If we have to move, are we going to be able to be within distance … to keep him there? … And it [the lack of security] is a cloud that’s there always."
The main reason Glenn and his partner rented a small semi-detached house in a high-rent area in Sydney was to ensure their son had a good schooling:
"We need to stay in the area for our son and we balanced that against sending him to a private school, so in that way it’s cheaper to live here even though the rent’s high."
<h2>A crisis of affordability and insecurity</h2>
The interviews indicated that the de jure insecurity associated with private renting in Australia doesn’t necessarily translate into de facto insecurity. 
However, for at least one in four of our interviewees, the chronic de jure insecurity associated with private renting imbued everyday life with ongoing anxiety and stress. 
The intensifying crisis of rental affordability in Australia’s major cities means these negative outcomes of long-term private renting are likely to affect growing numbers in the years ahead.
<a href="https://theconversation.com/profiles/alan-morris-13337" target="_blank">Alan Morris</a> is research professor, University of Technology Sydney.
<a href="https://theconversation.com/profiles/hal-pawson-147969" target="_blank">Hal Pawson</a> is associate director - City Futures - Urban Policy and Strategy, City Futures Research Centre, Housing Policy and Practice, UNSW.
<a href="https://theconversation.com/profiles/kath-hulse-228874" rel="author">Kath Hulse</a> is research professor, Swinburne University of Technology.
</body></html>

Private Renting

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Private Renting

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News