Since 2007 Prosper Australia has investigated the role of vacant land and housing on housing affordability in Melbourne.
Water data indicates 60,901 residential properties were vacant in 2017. This equated to a speculative vacancy rate of 3.9% for all residential property.
Absolute vacancies using zero litres of water revealed 21,326 residential properties at 1.3%.
The absolute vacancy finding of 21,326 using zero litres per day (LpD) demonstrates that more than $20 billion in vacant property existed at the height of Melbourne’s property boom.
As a percentage of investor-owned rental properties, a deeper vacancy analysis would see an increase from the advertised 3.3% vacancy rate1 to 7.8% (for 0LpD properties). If this was extended to include those properties using less than 50LpD, the vacancy rate could reach a disturbing 16.2% of all rental properties.