The Yarra Ranges Housing Crisis
Disasters, displacement and short-term rentals and the impact they have on local families.
The housing situation in the Yarra Ranges, particularly in the Dandenong Ranges, has become increasingly dire, exacerbated by a confluence of factors including rising homeownership rates, a booming short-term rental market, climate-related disasters, and family separations following the COVID-19 pandemic. As property prices surge and the rental market tightens, long-term residents—especially renters and displaced families—are finding it harder to stay in the communities they love.
Mums of the Hills has been watching the situation closely, feeling powerless to help. In a region already dealing with limited rental opportunities, the added complexity of more frequent disasters and post-pandemic family separations has made it clear that a long-term strategy is needed that supports our vulnerable residents and the next generation of individuals dreaming of living in our beautiful community.
The Shrinking Rental Market and the Rise of Short-Term Rentals
The Dandenong Ranges is a beautiful region that draws visitors from far and wide, but its attractiveness as a tourist destination is directly affecting the housing market for locals. A striking 93% of residents in the Dandenong Ranges are owner-occupiers, leaving just a small fraction of properties available for long-term renters. This issue is compounded by the rise of platforms like Airbnb and other holiday rental services, with 2,492 short-term rental listings now available in the area.
While these short-term rentals provide an income stream for property owners and boost tourism, they significantly reduce the number of homes available for people looking to rent long-term. Many of these homes would otherwise be part of the rental market, providing affordable housing for families, single parents, and other local residents. Instead, they cater to visitors, contributing to social disconnection and making it harder for renters to secure housing—and when they do, the costs are often prohibitive.
The High Cost of Rental Properties
The cost of long-term rentals in the Yarra Ranges is now above the state average, making it even more difficult for families to remain in the area. For many households, finding an affordable rental property is almost impossible. This is particularly challenging for separating families who need new living arrangements but want to stay close to their community.
MotHs has noticed a marked rise in family separations since the pandemic, reflecting broader national trends. For these families, the ability to stay close to familiar schools, jobs, and social networks is crucial to maintaining stability, particularly for children. However, with so few rental properties available and most priced above what many can afford, separating families are left with few options other than moving out of the area entirely.
This displacement fractures community ties, separates children from their friends and schools, and forces parents to commute longer distances to maintain employment. The housing crisis is not just a financial issue but one that affects the social fabric of the Yarra Ranges.
The Impact of Disasters on Housing Availability
The housing shortage in the Yarra Ranges has also been compounded by the increasing frequency of natural disasters. The June 2021 and February 2024 storms caused widespread destruction in the area, leading to the loss of many homes. For the community members affected, the struggle to find replacement housing in an already limited and expensive market is particularly acute.
Every time a major storm hits, families are displaced, often forced to leave the area while their homes are repaired or rebuilt. This is a drawn-out process, and with each passing storm, more families are faced with the painful decision of whether they can afford to stay in the area or need to relocate entirely. For renters, whose homes may be damaged beyond repair, the situation is especially precarious, as landlords may choose not to rebuild or may turn properties into holiday rentals rather than offering them back as long-term rentals.
As climate change increases the frequency and intensity of such disasters, the risk of displacement grows and premiums go through the roof. With more homes lost to storm damage and few rental properties available to begin with, the area’s most vulnerable residents—especially renters and low-income families—are at constant risk of losing their homes and being forced out of the community.
The Need for Sensitive Disaster Recovery and Housing Solutions
With the dual pressures of housing scarcity and frequent disasters, it is critical to find ways to support displaced and vulnerable community members. Sensitive, long-term solutions are needed to prevent further fragmentation of the Yarra Ranges' community. We support any ideas the council may have for interim accommodation, keeping families in the community while they rebuild their lives.
The Yarra Ranges is a vibrant community facing complex housing challenges, from the pressures of short-term rentals to the devastating effects of disasters. These issues have created a housing landscape where it is increasingly difficult for long-term residents to find stability.
As the housing market becomes more competitive and the threat of climate-related disasters grows, it is essential that the local council and state government step in to consider possible solutions. By addressing the rising cost of rentals, regulating short-term holiday properties, and providing sensitive disaster recovery support, the Yarra Ranges can become a place where all residents, regardless of their housing situation, can stay connected to their community.
The upcoming council election offers an opportunity for local leaders to prioritise these issues and develop a comprehensive housing strategy that works for everyone. MotHs will continue advocating for solutions that keep families close, strengthen community ties, and ensure that the Yarra Ranges remains not just a tourist destination, but a home for its long-term residents.
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