Renting Becomes More Popular In Melbourne

The property landscape has changed in Melbourne over recent years, as data from the 2011 Census reveals a rise in the number of people renting.

Figures show that ten years ago, 883,012 homes out of 1.26 million were owned or being purchased in the city.

This increased to 929,834 in 2006, representing 68 per cent of all homes on the market.

The latest Census covering last year revealed that although 998,860 homes were owned or being purchased, as a proportion of all properties it marked a decline from 70 per cent in 2001 to 67 per cent in 2011.

Analysing the figures, the Real Estate Institute of Victoria (REIV) suggested that more people are purchasing detached properties as the city expands outwards, with fewer people opting for high-rise living.

Earlier this month, the REIV responded to the federal government's National Housing Supply Council, which reflected on the current state of the residential property market in Victoria.

The REIV indicated that supply and demand are close to balance in the state, which as a result has eased pressure on house prices.

It acknowledged that strong price growth between 2005 and 2010 was mainly due to high population growth and a shortage of supply.