A Closer Look At The Average Rent in Melbourne, Australia
Melbourne’s rental market has tightened significantly in 2025, with weekly rents climbing across both houses and units. The current average rent in Melbourne sits around $575–$580 per week for houses and $550–$575 for units, reflecting one of the narrowest gaps between property types in years. Inner suburbs command much higher prices, while outer areas remain comparatively affordable, though still impacted by rising demand.
These shifts highlight how location and property type shape affordability. Premium suburbs such as Kew often exceed $850 per week, while areas further out, like Craigieburn, provide more accessible options. The steady rise in rents over the past year shows how broader economic pressures and limited supply continue to influence the market.
Understanding these changes matters for anyone planning to live in Melbourne. From comparing costs with other Australian cities to factoring in everyday expenses, the broader picture extends beyond rent alone and reveals the true cost of securing a comfortable lifestyle in Victoria’s capital.
Current Average Rent in Melbourne
Melbourne house rents have risen steadily through 2025, with both houses and units recording higher weekly costs compared to the previous year. Price differences remain notable between property types, and recent data shows that rental demand continues to push figures upwards despite affordability pressures.
Latest Median Weekly Rent Figures
Recent property data indicates that the median weekly rent in Melbourne sits at around $604, up from $525 a year earlier. This represents one of the sharpest annual increases in the past decade (As of April 2025 Data)
According to Homes Victoria’s March Quarter 2025 report, metropolitan Melbourne recorded a median of $585 per week, while regional areas saw smaller increases. Domain’s figures show unit rents at $575 per week, confirming consistent growth across different datasets.
Compared with the national median rent of about $665 per week in mid-2025, Melbourne remains slightly below the Australian average. However, the gap has narrowed as Melbourne’s rental market has accelerated faster than some other capitals.
Rental Price Differences by Property Type
The type of property strongly influences rent in Melbourne. Houses typically rent for slightly more than units, but the margin has tightened as demand for smaller dwellings has grown.
- Houses (metropolitan Melbourne): around $575 per week
- Units (metropolitan Melbourne): around $575 per week
- City centre apartments:
- 1-bedroom: approx. $2,128 per month (~$490 per week)
- 3-bedroom: approx. $3,994 per month (~$920 per week)
These figures highlight how location and dwelling size create considerable variation. Larger apartments in central areas command far higher rents, while suburban houses and units often align more closely around the median.
Recent Rental Market Trends
Rental prices in Melbourne have climbed steadily throughout 2025, with annual growth rates of around 4–5% in many suburbs. Rising demand, limited supply, and population growth have placed upward pressure on rents across both houses and units.
Gross rental yields have also improved, now sitting at about 3.7%, up from earlier in 2024. This reflects stronger returns for investors but also higher costs for tenants.
Tenant reports suggest that even modest apartments in popular suburbs are being leased quickly, often above advertised prices. This competitive environment indicates that Melbourne’s rental market remains tight, with affordability challenges expected to persist.
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Factors Influencing Average Rent Prices in Melbourne
Rent in Melbourne is shaped by where a property is located, the size and features it offers, and how supply balances with demand. These elements interact with broader economic conditions and population shifts, creating noticeable variations across different suburbs and property types for renters with different financial situations.
Location and Suburb Variations
Location remains the most significant factor in determining rental prices. Properties in inner-city areas such as Carlton, Southbank, and Fitzroy often attract higher rents due to proximity to employment hubs, universities, and transport links. Outer suburbs, while generally more affordable, may still command strong rents if they offer good schools, shopping centres, or convenient train connections.
Recent property data shows that median rents can differ by more than $100 per week between inner and outer Melbourne. For example, apartments in Docklands are priced well above those in suburbs like Werribee or Craigieburn.
Areas undergoing urban renewal or infrastructure upgrades also see rent growth. Suburbs along new rail extensions or near major road projects often experience increased demand, pushing weekly rents higher. Tenants typically weigh travel time and local amenities heavily when choosing a location, which directly reflects in rent levels.
Impact of Property Size and Features
The size and layout of a property strongly influence rent. Larger dwellings such as three- or four-bedroom houses usually command higher rents than one-bedroom apartments, particularly in family-oriented suburbs. However, compact apartments in central Melbourne can still achieve high weekly rents due to their location advantage.
Features such as modern kitchens, air conditioning, secure parking, and outdoor space also add value. Properties with energy-efficient appliances or recent renovations often attract tenants willing to pay more.
According to property data, a two-bedroom apartment with parking in inner Melbourne can rent for $100–$150 more per week than a similar unit without parking. Similarly, houses with additional bathrooms or flexible study spaces have become more desirable, especially as remote work remains common.
Rental Demand and Rental Vacancy Rates
Rental demand and vacancy rates directly shape rent in Melbourne. When there are low vacancy rates, competition among tenants pushes rents upward. In contrast, higher vacancy rates give renters more choice, often leading to price reductions.
Data from 2025 shows that metropolitan Melbourne recorded a median rent increase of $25 per week, bringing the figure to around $585. This rise reflects strong demand in the city, where population growth and limited new housing supply have tightened availability.
Share housing trends also affect demand. As more people live together to manage costs, the national average household size increases, reducing pressure on individual rental listings. However, in high-demand areas with limited stock, even small apartments remain competitive and rarely stay vacant for long.
Landlords closely monitor vacancy rates when setting rents, adjusting prices to reflect current market conditions. Tenants, in turn, use the same data to gauge whether rents are likely to rise or stabilise in their preferred suburbs.
Melbourne Rent Prices Comparison with Other Australian Cities
Melbourne’s rental market sits below Sydney’s but remains among the most expensive in the country. Costs also vary sharply between metropolitan Melbourne and regional Victoria, reflecting differences in demand, availability, and lifestyle preferences.
Melbourne vs Sydney and Other Capitals
Sydney consistently records the highest rents in Australia. A one-bedroom apartment in Sydney’s city centre typically costs AU$800–900 per week, compared with Melbourne’s average of AU$550–580 for houses and AU$520–575 for units. This gap makes Sydney less affordable for most renters, despite similar wage levels.
Other capitals show lower averages. Brisbane sits around AU$590 per week for units, Perth at AU$570, and Canberra slightly below Melbourne. Adelaide and Hobart remain the least costly among major cities, with weekly rents often AU$100–150 less than Melbourne’s.
The cost of living in Melbourne, including groceries, transport, and utilities, adds pressure beyond rent. However, Melbourne still attracts renters due to its employment opportunities and cultural amenities, even though property data confirms it is the second most expensive city after Sydney.
Regional Victoria vs Metropolitan Melbourne
Regional Victoria offers noticeably lower rents compared to metropolitan Melbourne. In many regional centres, such as Ballarat, Bendigo, or Geelong, weekly rents for houses average AU$400–450, while units are often AU$350–400. This represents a saving of at least AU$100–150 per week compared with Melbourne.
The difference reflects both demand and supply. Melbourne’s inner suburbs face high competition, especially near universities and employment hubs, while regional towns have more available housing stock.
Living costs also diverge. Utilities and groceries are similar across the state, but transport is often cheaper regionally due to less reliance on paid parking and toll roads. For households seeking more space and lower rent, regional Victoria remains a practical alternative to metropolitan living.
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Renting in Melbourne and the Cost of Living and Additional Expenses
Living in Melbourne involves more than just rent, with ongoing costs for utilities, food, and transport forming a significant part of monthly budgets. These expenses vary depending on lifestyle, location, and household size, but remain central to understanding the overall cost of living in Melbourne.
Utilities and Household Bills
Utility costs in Melbourne are relatively high compared to other Australian cities. A single person can expect to pay around AUD $175 per month for electricity, heating, cooling, and water. Internet services usually add another AUD $70–$90 per month, depending on speed and provider.
Households renting larger properties may face higher energy bills, especially during winter when heating is essential. Electricity rates in Melbourne are among the highest in the country, making energy efficiency and careful usage important for cost control.
For renters, landlords typically do not include utilities in the rent. This means tenants need to save money separately for electricity, gas, water, and internet. If you have a lower average salary or monthly income, splitting these costs in shared housing arrangements can significantly reduce the individual expense and rental stress.
Groceries and Daily Necessities
Groceries in Melbourne are moderately priced by Australian standards but remain higher than in many international capital cities. A single person’s monthly grocery bill averages AUD $400–$500, while a family of four may spend AUD $1,200–$1,500 depending on shopping habits.
Staple items such as bread, milk, and fresh produce are widely available, though imported goods and specialty items often cost more. Shopping at large supermarkets like Coles, Woolworths, or Aldi tends to be cheaper than smaller convenience stores.
Dining out adds to average living expenses, with a casual meal at a mid-range restaurant typically priced at AUD $25–$35 per person. Regularly eating out can quickly increase monthly expenses compared to cooking at home.
Transport and Connectivity
Melbourne’s public transport system includes trains, trams, and buses, all operating under the Myki card system. A standard monthly pass costs around AUD $170–$200, providing unlimited travel within metropolitan zones.
For those who drive, petrol prices fluctuate but often average AUD $1.80–$2.00 per litre. Parking in the city centre can be costly, with daily rates ranging from AUD $20–$40. Car ownership also requires budgeting for insurance, registration, and maintenance.
High-speed internet and mobile connectivity are widely available. Mobile phone plans typically cost AUD $30–$60 per month, depending on data allowances. Reliable coverage ensures residents can stay connected for work, study, and daily life.
Historical Rental Trends and Future Outlook For Melbourne Rent Prices
Melbourne’s rental market has shifted noticeably in recent years, with median weekly rental price growth slowing after a period of sharp increases. Current forecasts suggest continued pressure from limited housing supply and population growth, but the pace of rent rises may stabilise compared to earlier peaks.
Rental Price Changes Over Recent Years
Rental data shows that Melbourne experienced rapid growth in rents during 2022 and 2023, with increases of up to 19% in some quarters. By late 2024, the average rent had reached around $550 per week, representing a 10% annual rise.
In 2025, growth has eased. The March quarter reported a median rent of $585 per week in metropolitan Melbourne, up $25 from the previous quarter. Regional Victoria also saw a smaller rise to $460 per week.
Annual rental growth slowed to about 2% in early 2025, a significant drop from the 9.4% recorded a year earlier. This indicates that while rents remain high, the pace of increases has moderated.
Differences appear across regions. Inner Melbourne rents rose by 2.9% in the year to March 2025, while outer suburbs recorded smaller gains of 1.9%. This reflects stronger demand closer to the CBD, where supply remains tight.
Predictions for the Melbourne Rental Market
Looking ahead, rental property analysts expect Melbourne’s rental market to remain competitive. Demand is projected to average 38,000 dwellings per year over 2025–2030, while new apartment supply will average only 9,000 annually, well below Sydney’s levels.
This imbalance suggests upward pressure on rents, although the rate of increase may be less extreme than in previous years. Population growth and migration will continue to influence demand, particularly in inner and middle suburbs.
Suburb-level forecasts highlight that some areas will outpace the citywide average, especially those with strong transport links and limited new housing stock. Affordability concerns will likely persist, with households in lower-income brackets facing the greatest challenges.
In the short term, rental growth appears steadier than the sharp surges of recent years. However, without a significant lift in housing supply, median weekly rent in Melbourne is expected to trend higher through 2026 and beyond.
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