New Real Estate Industry Partners data shows unpaid rent now drives the majority of notices to vacate across Victoria.
The Real Estate Industry Partners report, built on figures from data partner Dynamic Methods, found arrears sat behind 52.5 per cent of monthly notices in July, a steep climb from under 25 per cent back in December. Houses are shouldering far more of that load than units.
It isn’t only tenants falling behind, though. Notices driven by owners choosing to sell, end a lease or move back in rose to 42.5 per cent over the first seven months of the year, up from 33.9 per cent late in 2025. REIP flagged a March peak in sale-related notices, suggesting the state’s rental reforms may have pushed some landlords to cash out.
Victoria’s rental market
- Arrears drove 52.5 per cent of monthly rental notices in July, up from under 25 per cent in December
- Owner-driven notices (selling, lease endings or owners moving back in) climbed to 42.5 per cent across the first seven months of 2026
- Median weekly asking rent rose 4.36 per cent over the year, from $490 to $511.38
- By July, median house rents hit $550 a week, with units close behind at $531.46
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Rents kept grinding upward across the board. The median weekly asking price lifted 4.36 per cent, moving from $490 to $511.38, while houses reached $550 by July and units settled at $531.46. REIP also noted advertised prices in Greater Melbourne sit above what sitting tenants pay after a review, with that gap stretching wider for units.
The numbers land against the backdrop of Victoria’s rental overhaul, which scrapped no-fault evictions and pushed notice periods out to 90 days from late 2025. REIP’s read is that the changes may have prompted some owners to list rather than stay in the market, thinning the pool of available homes.
The Victorian Greens have seized on the data to renew their pitch for statewide rent controls and a major public housing build, arguing renters are wearing the brunt of a market skewed towards investors. The party is pushing for a two-year rent freeze followed by permanent caps, alongside tens of thousands of new public homes.
“These figures are grim but unsurprising. Renters are cutting back on food, heating, and having to make impossible decisions between buying medicine or paying rent,” Victorian Greens spokesperson, Gabrielle de Vietri said.
“It’s not surprising that one in three evictions are being issued because people can’t simply keep up. What’s shocking is that renters are being put in this situation in the first place. This isn’t even the full story when we know that so many renters who may be just scraping by when they get hit with another rental increase which may as well be an eviction notice.
“The answer to this isn’t endlessly chasing more private investors and hoping the market eventually delivers cheaper rents. Labor’s been doing it for years and clearly it doesn’t work. We need to actually bring rents down and give people somewhere affordable to live. That means rent controls and a massive build of public housing.”
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