Inner-city rental crisis in oz

Melbourne's inner-city rental crisis has spilled into 2009, making it harder for office workers and students to find a bed within four kilometres of the CBD and forcing many into overcrowded conditions...

Some housing experts say average rents in the city have risen up to 20 per cent compared to last year and desperate tenants are pushed into accommodation further from their work or classes, copping bigger transport costs.

Real Estate Institute of Victoria figures show Melbourne's vacancy rate was 1.4 per cent in February, an improvement on 0.9 per cent in February 2008.

The inner-city rental situation is at crisis levels with the vacancy rate at 0.9 per cent for February.

In February 2008 the vacancy rate was 0.5 per cent. It means that of 1000 homes for rent in the inner city, only nine are actually empty.

"The fact that the rental vacancy rate has not been above two per cent for over three years is a significant problem," said REIV chief executive Enzo Raimondo. "It is leading to rental costs increasing at the same time as we are seeing significant improvements in affordability for home owners."

Leasing Melbourne Property Manager Kate Rigter reported crowds of up to 20 at inspections and that her agency was being "flooded" with inquiries.

Ms Rigter said some tenants had taken to offering more money upfront.

"Not really more money above the rent but more in that they will pay six months in advance or three months in advance."

RMIT Housing Advisory Service Co-ordinator Robin Turner said demand exceeded supply when students arrived for the start of the tertiary year.

"All the student accommodation, I would say on average, rents have gone up by 20 per cent from last year, 17 to 20 per cent," she said.

"International students don't get a concession on public transport, so if they look for accommodation in zone two it almost doubles their transport costs."

Ms Turner said many students were opting to share, sometimes in cramped conditions.

Source: www.theage.com.au