Securing a rental property continues to be an extreme challenge for tenants. Vacancy rates are hovering at record low levels and the number of properties available to rent keeps diminishing.

“The latest REINSW Vacancy Rate Survey results paint a grim picture,” REINSW CEO Tim McKibbin said. “While the vacancy rate for Sydney overall rose slightly in October to be 1.8% (+0.2%), there’s little cause for optimism.

“Demand for rental accommodation across Sydney is at an all-time high. Many REINSW members simply have no available properties on their rent rolls. Others that do are reporting that 40 to 50 people are arriving at inspections, resulting in upwards of 30 applications for a single property.

“What we’re currently experiencing is truly unprecedented.” The situation is no different outside of Sydney.

“Vacancy rates in the Hunter and Illawarra regions both dropped in October to be 1.1% (-0.3%) and 1.8% (-0.6%) respectively, and regional areas across the state continue to be extremely tight,” Mr McKibbin said.

“Cost-of-living pressures continue to mount for tenants and landlords alike. Recent interest rate hikes and escalating demand will undoubtedly put upward pressure on rents, with the result that some tenants will be displaced because they simply can’t afford to stay put.

“Over the last few years, we’ve seen an increasing number of landlords electing to put their properties in the holiday and short-term market. This is adversely affecting tenants, diminishing available properties and putting upward pressure on rents.

“And this is in addition to all the properties that are no longer available in many areas due to flooding damage.

“There’s no denying that we’re in the midst of a rental crisis, the likes of which we’ve not seen and it’s only going to get worse. Supply continues to be the key problem. There is simply not enough housing to cope with demand and this is putting tremendous pressure on the rental market.”