The REINSW Vacancy Rate Survey results for May 2022 show that residential vacancies in Sydney are at their lowest level since June 2017.

“The vacancy rate for Sydney overall dropped 0.4% for the month to be just 1.8%,” REINSW CEO Tim McKibbin said. “The drop is primarily attributable to vacancies in the Middle Ring plummeting to 1.6% (-1.7%). The Outer Ring decreased slightly to 1.6% (-0.1%), while the Inner Ring increased to 2.3% (+0.2%).

“This 5-year low in Sydney vacancies is proof that the rental crisis is real. To say this is concerning is certainly an understatement.”

Outside Sydney, vacancy rates in the Hunter and Illawarra also dropped.

“In the Hunter region, the vacancy rate dropped by 0.4% to be 1.3%. The Illawarra region also dropped, with vacancies now at 1.0% (-0.3%),” Mr McKibbin said.

While vacancy rates eased in some regional areas, others experienced a further tightening.

“Vacancy rates for the Albury, Coffs Harbour, Mid-North Coast, Murrumbidgee, South Coast and South East areas all recorded increases,” Mr McKibbin said. “However, the Central Coast, New England, Northern Rivers, Orana and Riverina areas all dropped. Only the Central West remained stable.”

As has been the case for much of the last two and a half years, sourcing rental stock continues to be an issue across New South Wales.

“REINSW members in many areas are telling us that the rental crisis is really starting to take hold,” Mr McKibbin said. “Demand for rental accommodation is causing a shortage in properties, resulting in an uptick in rent. This is making it more difficult for families to find affordable housing amid growing cost of living pressures.

“In many instances, agents are receiving 15, 20 and even more applications for a single property. And, faced with the prospect of being unable to secure a home, renters are offering above the advertising price or multiple months up-front. But, unfortunately, many simply can’t afford to do this.

“It’s a very stressful time for renters.”