Melbourne’s rental market: What the numbers are really telling us

There’s been a lot said about Melbourne’s rental market this year, but sometimes it’s worth ignoring the noise and just looking at what’s actually happening.

As of the end of September 2026, across more than 4,000 properties managed by MRE, we have 48 existing properties sitting vacant. That’s approximately 1.2% of our portfolio.

When you look at the latest REIV numbers, you can see why. Melbourne’s vacancy rate has been heading back down. The six-month average has fallen from 2.78% in May to 2.46% in August. Closer to the city, where a large part of our portfolio sits, the change is even clearer. Inner Melbourne has moved from 2.74% to 2.25%, while the 0–4km market has fallen from 3.20% to 2.38%. Despite some of the commentary we’ve heard throughout the year, renters are still out there and good properties are moving.

Rents tell a similar story.  Median rent for an inner Melbourne apartment is now $625 per week, up from $590 this time last year. That doesn’t mean every landlord should immediately put the rent up, but it does mean is talking to your property manager and understanding where your property sits.

One thing we have learnt at MRE is that averages only tell you so much. Two apartments in the same building can achieve very different results depending on their condition, presentation, pricing, floor plan, and how they are marketed.

The same applies to vacancy. A strong rental market helps, but you still have to get the basics right. Price the property incorrectly or make it difficult for renters to inspect and you can quickly lose a week or two. That’s why the 48 vacant properties is probably the number we are most interested in. It’s a real-time snapshot of what’s happening across a large Melbourne portfolio – and at the moment, it’s telling us that rental demand is holding up well.

If you own an investment property and haven’t reviewed its rent or leasing strategy recently, now is a sensible time to see where it sits. Not because you necessarily need to change anything, but because the market has moved, and it’s worth knowing what that means for your property.