Bendigo’s New Developments Set to Reshape Rental Market Dynamics

Bendigo is seeing a surge in new residential development projects that are expected to significantly affect the city’s rental market. Large-scale apartment complexes and housing estates in growth corridors are currently under construction or in the planning stages, aiming to address ongoing rental shortages and accommodate population growth.

These developments come as rental vacancies in Bendigo remain historically low and rents are climbing, a trend that is putting pressure on renters throughout the region. For the first half of 2026, Bendigo’s rental vacancy rate hovered around 0.9%, according to the Real Estate Institute of Victoria (REIV), well below the healthy benchmark of 3%. At the same time, median weekly rents rose by 7% compared to the previous year, amplifying concerns over housing affordability.

New Developments Target Key Growth Areas

Among the major projects active in Bendigo is the Eaglehawk Rise estate on Plenty Road, which will add 150 new homes, including a mix of single-family houses and townhouses targeted at families and first-home buyers. Meanwhile, in the heart of the city, the Riverside Apartments on Pall Mall are nearing completion, delivering 80 modern apartments aimed at professionals and downsizers seeking proximity to Bendigo’s arts and cultural precinct.

The City of Greater Bendigo has specifically championed these projects through incentives and streamlined approvals as part of its Housing Strategy 2025, which seeks to boost dwelling stock in areas well-served by transport and amenities. The council’s emphasis on developments around the Flora Hill and Strathdale suburbs aligns with their popularity among remote workers and commuters thanks to improved road links and proximity to Bendigo CBD.

How the Data Shapes Rental Prospects

Data from the Australian Bureau of Statistics (ABS) highlights that Bendigo’s population grew by 2.5% over the 2025 financial year, placing demand pressure on local housing markets. The combination of strong population growth and low vacancy rates has pushed median weekly rents for three-bedroom houses to approximately $420, according to REIV figures from June 2026, up from $390 a year prior.

With the influx of new housing supply through the Eaglehawk Rise development set to deliver its first homes by late 2026, and Riverside Apartments already slated for tenant occupation this month, the rental market could see a modest easing in vacancy rates over the next 12 months. However, industry experts caution that absorption rates will depend on broader economic factors, including employment growth and interest rates affecting local buyer activity.

The educational hub around Flora Hill continues to attract students and academics, while Strathdale’s mix of older homes and new builds draws families, putting focus on rental properties that meet diverse lifestyle needs. City council data indicates that between 2021 and 2026, rentals in Strathdale have increased by 10% in median price, reflecting strong demand in well-established neighbourhoods.

Prospective renters and investors should monitor these developments closely. Leasing options are expected to expand, but affordability challenges may continue as demand rises with population growth. Tenants might find more variety in the market by mid-2027, particularly in new apartment stock near the CBD and in outer growth corridors, but securing properties quickly will remain critical in the short term due to historically low vacancies.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.