The Taylors Hill rental yield for houses sits at approximately 2.35% gross, while units deliver a stronger gross yield of around 3.90% — based on DataVic/REIV median sale prices and ABS Census median rent figures for the suburb. If you are evaluating Taylors Hill as an investment destination in 2026, this guide breaks down exactly what those numbers mean, where they come from, and what experienced investors consider before committing capital to this north-west Melbourne corridor.

What Is the Taylors Hill Rental Yield Right Now?

Rental yield is the most direct measure of how hard your property works for you each year. Gross yield is simply annual rent divided by purchase price, expressed as a percentage. Net yield subtracts ongoing costs — council rates, insurance, property management fees, maintenance and vacancy allowances — and is the number that actually lands in your pocket.

Here is how the current Taylors Hill figures stack up:

House Yield Calculation

• Median sale price (Apr-Jun 2025 Quarter): $932,000 (QoQ +1.5%, YoY -1.7%) — source: DataVic/REIV via Collings CRM data
• Median weekly rent (ABS Census 2021): $420/week
• Annual rent: $420 x 52 = $21,840
• Gross yield: $21,840 / $932,000 = ~2.35%
• Estimated net yield (after typical costs of 1.0-1.3%): approximately 1.05% to 1.35%

Unit Yield Calculation

• Median sale price (Apr-Jun 2025 Quarter): $562,000 (QoQ +2.0%, YoY +2.0%) — source: DataVic/REIV via Collings CRM data
• Median weekly rent (ABS Census 2021): $420/week
• Annual rent: $420 x 52 = $21,840
• Gross yield: $21,840 / $562,000 = ~3.88%
• Estimated net yield (after typical costs of 1.0-1.3%): approximately 2.58% to 2.88%

The unit segment clearly delivers a meaningfully higher income return for investors. That said, houses in Taylors Hill have historically attracted stronger long-term capital growth narratives given the suburb’s family demographic. The question is always: are you optimising for income today, or equity tomorrow? For investors focused on yield, units are the more compelling entry point. For a broader view of which Melbourne suburbs are currently producing the strongest returns, the rental yield Melbourne guide from Collings is a useful reference point.

What Do the Taylors Hill Numbers Actually Tell Us?

Numbers in isolation are only part of the picture. Context transforms data into a decision-making tool.

Suburb Demographics and Demand Drivers

According to ABS Census 2021 data, Taylors Hill has a population of 15,419 residents, a median age of 35.0 years, and a median household income of $2,374 per week. That household income figure is notably strong — it sits comfortably above the Greater Melbourne average — suggesting a tenant base and potential buyer pool with genuine purchasing and renting power.

A median age of 35 points firmly toward young families and dual-income households, which translates into demand for well-presented three and four-bedroom homes as well as quality two-bedroom units. These tenants tend to be stable, longer-term renters who prioritise good schools, parks, and accessibility to arterial roads and the Calder Freeway.

Price Movement Trends

The latest DataVic/REIV figures (Apr-Jun 2025 Quarter) show house prices at $932,000, representing a modest quarter-on-quarter gain of +1.5% but a year-on-year softening of -1.7%. Units, by contrast, are trending positively at $562,000, up +2.0% both quarter-on-quarter and year-on-year. This divergence is important: units are not only yielding more right now, they are also appreciating at a faster rate in the current cycle.

Vacancy and Rental Market Conditions

SQM Research vacancy data for the broader Melton/Caroline Springs corridor (which encompasses Taylors Hill) has consistently tracked below 2.0% in recent quarters, indicating a tight rental market. Low vacancy means less risk of extended periods without a tenant — a critical variable in any net yield calculation. Investors who have been watching the Investment Properties Melbourne market will recognise that Melbourne’s north-west has been a beneficiary of population growth and housing affordability pressures pushing renters further from the CBD.

ATO Investor Context

The Australian Taxation Office (ATO) reports that the majority of residential property investors in Australia hold negatively geared assets — meaning their rental income does not cover their holding costs. At a gross yield of 2.35% for houses, Taylors Hill house investors are almost certainly in negative gearing territory when mortgage costs are factored in. This is not inherently bad: the tax deductibility of losses can reduce net cost, and investors accepting lower current income are typically banking on capital growth over a 7-10 year horizon. Unit investors at 3.88% gross are closer to neutral gearing, particularly at lower loan-to-value ratios.

What Are the Key Considerations Before Investing in Taylors Hill?

Taylors Hill is a suburb that rewards patient, informed investors. Here are the factors that matter most:

1. Property Type Selection

As demonstrated above, units significantly outperform houses on yield in the current market. Investors should consider whether a townhouse or unit in the $500,000-$600,000 range, generating approximately $400-$440 per week in rent, aligns better with their income objectives than a house at twice the price with a lower proportional rental return.

2. Depreciation and Tax Scheduling

Newer properties in Taylors Hill — the suburb has seen significant development activity over the past decade — typically qualify for substantial depreciation deductions under Division 43 (building allowance) and Division 40 (plant and equipment) of the Income Tax Assessment Act. A quality tax depreciation schedule from a registered quantity surveyor can meaningfully improve effective net yield, sometimes by 0.5-1.0% per annum in the early years of ownership.

3. Rental Management Quality

In a suburb where the median household income is $2,374 per week, tenants have choices. Presentation, maintenance responsiveness, and proactive property management are not optional extras — they directly affect vacancy rates and achievable rent. Engaging a specialist property manager with genuine local knowledge of the north-west Melbourne corridor is one of the highest-return decisions an investor can make.

4. Infrastructure and Growth Catalysts

Taylors Hill benefits from proximity to the Calder Freeway, Watergardens Town Centre, and established school catchments. The ongoing development of the Western Ring Road connections and continued population growth in Melbourne’s north-west corridor support long-term rental demand. CoreLogic data indicates that suburban growth corridors with strong infrastructure investment tend to sustain rental demand even during broader market softening periods.

5. Comparing Across Melbourne

Investors should always benchmark Taylors Hill against alternative suburbs. For example, rental yield in Northcote follows a very different profile — higher median prices, inner-city dynamics, and a distinct tenant demographic. Understanding how Taylors Hill’s yield profile compares across the metro area is essential for portfolio construction decisions.

How Does Collings Real Estate Help Taylors Hill Investors?

Collings Real Estate specialises in helping Melbourne investors find, acquire, and manage high-performing residential assets. Whether you are evaluating your first investment property or expanding an existing portfolio, the team brings together suburb-level data, off-market access, and experienced property management to help you make confident decisions.

For investors specifically focused on yield optimisation, Collings operates a dedicated investor portal where off-market and pre-market opportunities are shared before they reach general listing platforms. Signing up at the Collings investor portal gives you early access to properties that never appear on Domain or realestate.com.au — a genuine advantage in a competitive market.

The Collings team can walk you through a full yield analysis for any property you are considering in Taylors Hill, including gross yield, estimated net yield after all holding costs, depreciation benefit modelling, and a realistic vacancy risk assessment based on current local rental market conditions.

Talk to a Collings property strategist today to get a personalised Taylors Hill investment analysis tailored to your financial goals.

Frequently Asked Questions About Taylors Hill Rental Yield

What is the gross rental yield for houses in Taylors Hill?

Based on a median sale price of $932,000 (DataVic/REIV, Apr-Jun 2025 Quarter) and a median weekly rent of $420 (ABS Census 2021), the gross rental yield for houses in Taylors Hill is approximately 2.35% per annum.

What is the gross rental yield for units in Taylors Hill?

Units in Taylors Hill deliver a stronger gross yield of approximately 3.88% per annum, based on a median unit price of $562,000 (DataVic/REIV, Apr-Jun 2025 Quarter) and the same $420 median weekly rent figure from ABS Census 2021.

Is Taylors Hill a good suburb for property investment?

Taylors Hill offers a combination of strong demographic fundamentals — a population of 15,419, median household income of $2,374 per week, and a median age of 35 — alongside relatively affordable entry prices compared to inner Melbourne. It suits investors with a medium-to-long term horizon who are prepared to accept moderate current yields in exchange for stable tenant demand and infrastructure-backed growth potential.

Are Taylors Hill property prices going up or down?

According to DataVic/REIV data for the April-June 2025 Quarter, house prices in Taylors Hill are up 1.5% quarter-on-quarter but down 1.7% year-on-year at $932,000. Unit prices are more positive, rising 2.0% both quarter-on-quarter and year-on-year to reach $562,000.

What weekly rent can I expect from a Taylors Hill investment property?

The ABS Census 2021 records a median rent of $420 per week in Taylors Hill. Current market rents may be higher given rental inflation since 2021 — a local property manager can provide a current rental appraisal based on comparable leased properties in the area.