Rental stock tumbles amid investor exodus

Landlords have had a target on their head for some time now as their rights slowly diminish, compounded by the fact they are constantly demonised for owning more than one home.

This pressure has become too much for thousands of Victorian investors who are exasperated and have thrown in the towel, choosing to place their investments in a much friendlier space.

MCG Quantity Surveyors confirm the Victorian rental market is facing a significant crisis, with new data revealing a concerning trend of declining investor activity and a net loss in rental properties.

According to their latest research, the number of new investor loans has dropped dramatically, leading to a shortage in rental stock and increased pressure on the market.

MCG Quantity Surveyors Managing Director Mike Mortlock said Victoria’s rental market was in a precarious position.

“Over the past three months, investor loans in Victoria totalled 10,220, resulting in an annualised figure of 40,880.

 

“During the same period, annualised ex-rentals were calculated at 45,924 meaning we’re looking at a net loss of 5,044 rental properties, a 1 per cent decrease in the state’s private rental stock.”

The issue is not just about existing landlords exiting the market; potential new landlords are also wary of investing in Victoria.

The trend suggests a broader reluctance among investors, exacerbated by policies and market conditions that dissuade investment in the state’s rental properties.

“Landlords are increasingly cautious about entering the Victorian market,” Mr Mortlock said.

“It’s not just about those who are leaving, many potential investors are now avoiding Victoria altogether, seeking opportunities in other states with more favourable conditions.

“This reluctance to invest is further shrinking the available rental stock, making it harder for tenants to find affordable housing.”

MCG Quantity Surveyors say the key to address this crisis is to end the blame game and focus on constructive solutions.

Demonising landlords can lead to a worsening situation for renters, who are already feeling the pinch of reduced rental availability and higher prices.

“We need to resist the temptation to point fingers at landlords,” Mr Mortlock advises. “Blaming them as the bad guys will only exacerbate the problem, making things even worse for long-suffering renters.

“Instead, we should work on creating a more supportive environment for property investors, which in turn will help stabilise and grow the rental market.”