If more tenants want to live in an area, that leads to increased demand for rental properties, which puts upward pressure on rental rates.- Tommy Fraser
The cost of renting a home in Warrnambool is expected to increase in 2022, a new report reveals.
Warrnambool is listed in the Hood Tenant Report as one of 20 suburbs most likely to have further rent increases.
The report shows the median weekly rent for a Warrnambool property increased from $370 in January 2021 to $420 in January 2022 - a 13.5 per cent increase.
The vacancy rate also went from 0.7 per cent to 0.4 per cent.
The prediction is a concern for Warrnambool's Rachael Marlow, who has been looking for a rental since September last year.
She has applied for more than a dozen properties - some which had an asking price of $500 a week.
Ms Marlow, who has ongoing employment, has lived in Warrnambool for seven years and has never had this much trouble finding a rental.
She is staying in a motel at the moment.
Ms Marlow said she was worried it may make it even more difficult for her to secure a home if prices increase.
Hood founder and chief executive officer Tommy Fraser said said one main factor driving up rents was high demand for properties.
"Ever since the pandemic started, people have taken a greater interest in where they live, both in terms of the location and the type of property. That's reflected in moving data," he said.
"The interesting thing about these 20 suburbs is their diversity. There are metro suburbs like Diamond Creek in north-east Melbourne, sea-change locations like Safety Beach on the Mornington Peninsula and tree-change locations like Golden Square in Ballarat.
"If more tenants want to live in an area, that leads to increased demand for rental properties, which puts upward pressure on rental rates. That's why landlords are likely to increase rents in these 20 suburbs at the next rental review."
An online search of rental properties in Warrnambool shows there are very few listings for under $400.
Earlier this month, it was revealed rent prices had risen by a minimum 10 per cent across Warrnambool.
Property investment group Real Estate Investar figures showed median rents in the past year for Warrnambool had gone up 10.8 per cent for houses, 10 per cent for townhouses, and 13.2 per cent for units.
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