Rental bonds across Melbourne fell 1.3% in Q4 2024, marking the sixth consecutive quarterly decline. Since bonds lodged with the RTBA (Residential Tenancies Bond Authority) effectively track the number of dwellings occupied as rentals, the data confirms that Melbourne’s rental stock is steadily shrinking.

Shrinking stock but no ease in demand 

Vacancy rates have remained steady over the same period, meaning the decline in rental bonds is not due to softer demand. Instead, it highlights a contraction in the overall pool of rental dwellings available across the city. This keeps pressure on the rental market, with demand still outpacing supply.

Population growth intensifies the pressure 

This contraction comes as Victoria’s population surpasses seven million, with migration continuing to underpin demand for housing.

With fewer properties being added to the rental pool (and fewer being occupied as rentals) tenants are left competing for a diminishing share of stock. The imbalance between strong demand and shrinking supply ensures Melbourne’s rental market remains firmly in landlords’ favour.

This article references findings from our August 2025 Melbourne Metro Apartments & Townhomes Market Report. Read the full report here.