Think it's tough to find a rental home in Sydney? You're not wrong, with the latest data showing the residential vacancy rate is just 1.8 percent.

Data released by the Real Estate Institute of New South Wales from their December 2015 REINSW Vacancy Rate Survey shows the rental market remains incredibly tight.

“Stock levels remain low in some of Sydney’s most popular areas and this is set to continue until the completion of many large developments which are underway,” said REINSW President John Cunningham.

Vacancy rates in Outer Sydney rose 0.2 percent to 1.9 percent, while Middle Sydney rose 0.7 percent at 2.4 percent due in large part to lower response rates in this area caused by the holiday period.

Elsewhere, availability in the Hunter region continued its decline with a fall of 0.2 percent at 2.3 percent. Newcastle was down 0.3 per cent at 1.8 percent.

In the Illawarra the overall vacancy rate fell 0.1 percent to 0.9 percent despite a rise of 0.4 percent in Wollongong to 1.5 percent.

In the regional areas New England rose 0.2 percent to 3.3 percent, Albury added 0.8 percent to 3.2 percent and the South Coast was up 0.3 percent to 1.7 percent. Northern Rivers dropped 0.6 percent at 0.9 percent and Coffs Harbour was down 0.8 percent at 1.7 percent.