23/06/2026
Enable Group Observer: Victorian Rooming House Market โ Key Figures 2026
For those observing the Victorian rooming house and co-living sector, the data emerging in 2026 paints a clear picture of the structural shifts driving this asset class. Here is a breakdown of the key metrics and underlying demand drivers shaping the market.
Key Market Figures
1,300+ Licensed Operators
The sector continues to formalize, with over 1,300 licensed operators now active on the Victoria CAV Public Register of Rooming House Operators. This indicates a maturing market with established compliance frameworks.
7โ12%+ Gross Yield Range
For well-structured, compliant stock, observations show a gross yield range of 7% to 12% or more. This aligns with REA Group data highlighting the strongest rental yields across Australia, particularly in high-density, multi-income properties.
1.26% Managed Vacancy
Operational efficiency is a defining factor in this sector. Specialized co-living operators are demonstrating the ability to maintain exceptionally low vacancy rates. For instance, Harmony Group Co-Living Property Management Melbourne reports a managed vacancy rate of just 1.26%.
Victorian Demand Drivers
Historic Affordability Lows
Victoriaโs private rental market remains under significant pressure. The Anglicare Victoria 2025 Snapshot highlights that only 0.8% of rentals were affordable for those on the Age Pension. With median Melbourne whole-dwelling rents sitting at $590 to $600 per week, private rooms priced between $280 and $430 per week represent the only viable private market option for a large and structurally growing cohort of renters. This affordability gap is a primary driver of sustained demand for co-living spaces.
Student Accommodation Shortfalls
Melbourne stands as Australiaโs largest university city by enrolment, hosting over 180,000 international students at universities and TAFEs. However, purpose-built student accommodation currently covers less than 6% of the total need. Students attending institutions such as RMIT, UniMelb, Monash, and Deakin primarily seek private shared accommodation in inner-ring suburbs. This places them in direct competition for available rooming house and co-living stock, further tightening the market.
The Takeaway
The convergence of high yield potential, exceptionally low managed vacancy rates, and profound structural demand driversโnamely housing affordability and student accommodation shortfallsโmakes the co-living and rooming house sector a distinct segment of the Victorian property market.
Observations based on publicly available market data and industry reports.
What trends are you observing in your local market? Let us know in the comments below.
