Renters in Castlemaine are paying an average of 37 per cent of their income towards rent, according to a new report.
Castlemaine was ranked as the area in the 7th most rental pain in the state in Suburbtrends' August 2024 Rental Pain Index, which takes into consideration increases in rental costs, wages and rental vacancy rates.
"We're just seeing everything get more expensive," said Castlemaine real estate agent Michael Cantwell.
"It's just the cost of living. It's everything from the supermarket to housing."
"Even takeaway food - how expensive is that? Let alone going out for dinner."
Mr Cantwell said there were numerous properties available in the Castlemaine area but they weren't affordable and developers who were looking to build affordable housing were often held up by planning.
"I know one case where they've been stuck in planning for two years. Everything takes time. There's a lot of compliance."
Developments that do go through tend to be higher end, said Mr Cantwell, with high rents needed to recover the cost of the build.
Rent rises 6 per cent in Bendigo area
Wages across the country had only risen up to 4 four per cent in the last twelve months while rent in the Bendigo area, which covers greater Bendigo including Castlemaine, has risen six per cent on average, said Suburbtrends' founder Kent Lardner.
"That should be a concern for us all because rents are outstripping wages growth and that just means a lot less money in the pocket of people when they need that money the most," Mr Lardner said.
For those earning below the average household income, there is an increased risk of displacement and homelessness, Mr Lardner said.
According to the Rental Pain Index, rent prices rose six per cent in Castlemaine over the last 12 months with renters paying an average of 37 per cent of their household income to rent.
The vacancy rate is sitting at 1.2 per cent, which Mr Lardner described as "really, really bad".
"I almost dismiss anything at 1.5 per cent or below as there are no vacancies."
Mr Lardner said the crisis is due to a disconnect between population growth and housing supply.
In regional Victoria, the population surged during the COVID-19 pandemic as people looked to escape Melbourne's lockdowns.
During the lockdowns, 26,212 people moved to the regions from Melbourne according to the Australian Bureau of Statistics.
Now, population growth is driven by comparatively cheaper house prices in the regions, Mr Lardner said.
Mr Lardner would like to see a focus on emergency accommodations for those in immediate need, a long-term solution to population growth and a strategy for affordable housing.
"Building $700,000 plus houses doesn't solve the problem for 20 or 30 per cent of the population who will never be able to afford that house," he said.
Local council tackles housing affordability
Mt Alexander Shire council, which includes Castlemaine, has been working to combat the homelessness crisis for the last two years.
In 2023, the council unanimously voted to remove the requirement for a permit to camp on private property as a response to the homelessness crisis in the area.
People are now able to camp in a tent, caravan or "tiny home" on wheels for an indefinite period on properties where there is an existing dwelling.
In June this year, the council voted to establish a charitable trust which would be used to build and manage housing which will remain affordable forever, regardless of fluctuations in the housing market.
