Best Melbourne Suburbs for Co-Living.
Where demand, rents, transport and zoning align to support purpose-built co-living and rooming house investment across Melbourne.
Melbourne suburbs by co-living suitability.
A suitability score out of 10 based on rental demand, vacancy, transport, employment and education anchors, and zoning. Each suburb has a detailed guide.
| Suburb | Region | Room rent | Vacancy | Best config | Score |
|---|---|---|---|---|---|
| Clayton | East | $400–$480/wk | 0.8% | 8–9 room | 9.1 |
| Sunshine | West | $340–$420/wk | 1.0% | 7–9 room | 8.8 |
| Dandenong | South | $330–$410/wk | 1.1% | 7–9 room | 8.7 |
| Footscray | West | $380–$460/wk | 0.9% | 7–9 room | 8.6 |
| Werribee | West | $320–$380/wk | 1.2% | 6–9 room | 8.5 |
| Preston | North | $360–$430/wk | 1.1% | 6–9 room | 8.4 |
| Reservoir | North | $340–$410/wk | 1.2% | 6–8 room | 8.2 |
| Epping | North | $330–$400/wk | 1.2% | 6–9 room | 8.1 |
| Melton | West | $300–$360/wk | 1.4% | 6–8 room | 8 |
| Thomastown | North | $320–$390/wk | 1.3% | 6–8 room | 7.8 |
Scores are indicative assessments for guidance only. Actual suitability depends on the specific site, zoning, overlays and market conditions.
The factors behind the score.
Rental demand
Population growth, workforce and student presence that sustain multiple tenants.
Room rents
Higher per-room rents lift yield; the single biggest income driver.
Vacancy
Low vacancy means faster leasing and more stable income.
Transport
Proximity to train, tram and bus routes broadens the tenant pool.
Employment & education
Hospitals, universities and employment hubs anchor demand.
Zoning & overlays
Zones that support medium density, without prohibitive overlays.
Suburb FAQs.
What is the best Melbourne suburb for co-living?
There is no single best suburb — suitability depends on your budget, target tenant and the specific site. Among the suburbs we cover, Clayton, Sunshine, Dandenong and Footscray score highly for demand and rents, while Werribee and Melton offer lower land cost. Each has a detailed guide.
Should I build co-living in a new growth suburb?
Growth corridors offer lower land cost and larger lots, which can lift yield, but carry oversupply risk in some new estates. Transport-proximate established suburbs tend to offer more stable demand. The suburb guides set out the trade-offs for each location.
How do I choose between suburbs?
Balance land cost against room rents and demand, check the zoning and overlays, and confirm the council's policy on rooming houses. The feasibility tool and the suburb guides are the starting point; a site-specific assessment confirms the choice.
Found a suburb? Assess your site.
The suburb guides show where demand is strong. The feasibility tool shows what your specific block can support.
Assess Your Site →