The REINSW Vacancy Rate Survey results for May 2023 show that residential vacancies in Sydney remain at crisis levels.

“While the residential vacancy rate for Sydney overall rose by 0.1% to be 1.4%, this is still a historic low,” REINSW CEO Tim McKibbin said. “Vacancies consistently hovering at this level for months is something the market has not experienced for more than a decade.

The slight rise in the rate for Sydney overall is a result of vacancies increasing in the Inner Ring of Sydney.

“Sydney’s Inner Ring rose to 2.1%, an increase of 0.6% for the month,” Mr McKibbin said. “However, both the Middle and Outer Rings tightened to be 0.7% (-0.5%) and 1.2% (-0.1%) respectively.”

Outside Sydney, residential vacancies also eased slightly across many areas.

“In the Hunter region, the vacancy rate increased by 0.1% to be 2.0%,” Mr McKibbin said. “The Illawarra region also rose, sitting now at 1.8% (+0.3%).”

Vacancies also remain tight across most regional areas of New South Wales, with the Central West, Mid North Coast and South East areas each recording drops. The Albury, Coffs Harbour, Murrumbidgee, New England, Orana, Riverina and South Coast areas eased slightly, while the Central Coast and Northern Rivers areas remained stable.”

While this latest survey shows a slight easing in vacancy rates, there is little cause for celebration, according to Mr McKibbin.

“Slight fluctuations are to be expected from month to month, but there’s no doubt that the rental crisis continues to maintain its grip on New South Wales,” he said. “The availability of stock in the rental market is at an all-time low, weekly rents are rising and everyone is faced with increased living costs. None of these things are showing any signs of getting better – in fact, they’re getting worse.

“Something has to change.”

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