Median rental price in Warrnambool $100 higher than Ballarat

Real Estate Institute of Victoria data reveals the median price for a rental in Warrnambool is $475.

That's compared to $375 in Ballarat, $390 in Bendigo and $430 in Portland.

Brian O'Halloran and Co director Brian Hancock said the cost of rent had risen in the city in the past two years.

Mr Hancock said a combination of factors, including higher demand in Warrnambool properties, had contributed to the increase.

"We knew this was going to happen a couple of years ago," Mr Hancock said.

"We were riding into the perfect storm."

Rising interest rates was another factor contributing to the increase.

Mr Hancock said people who owned an older property needed to make upgrades to meet certain standards for rentals.

The cost of repairs and the challenge of securing tradespeople to complete them in a timely manner were other factors, he said. "We're seeing a lot of these sold," Mr Hancock said.

He said he believed if there were further interest rate increases, rental prices may continue to increase and some investors may choose to sell their properties.

"I think if we have another couple of interest rate rises there will be some investors who sell their properties to get rid of the mortgage," Mr Hancock said.

An online search revealed the cheapest three-bedroom rental in Warrnambool was listed at $370 per week.

There was only one three-bedroom property at that price point, while there were a number listed for $450 a week and a number of homes that were listed for more than $500 a week.

An Everybody's Home report revealed Victorian renters on low incomes were finding it hard to find an affordable home. "The shortage of affordable rentals will condemn people to make difficult decisions to keep a roof over their head," the report states.

"Of all of the households featured in this Snapshot, families with two parents in full-time work stand the best chance of finding an affordable home. Even they will find they are locked out of three quarters (74.8 percent) of the rentals we surveyed."

A report released by CoreLogic has revealed the mistmatch between supply and demand has pushed up rental prices in capital cities and regional areas.

It revealed regional rents rose 1.3 per cent over the past three months and 6 per cent over the year to April.

On the weekend a home on Gateway Road sold for well over the expected price at auction. It sold for $732,000 after it was listed with a $650,000 to $700,000 price range.

The four-bedroom home had interest from three bidders.

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