The REINSW Vacancy Rate Survey results for September 2023 signal a worsening of the rental crisis.

“Vacancy rates across the majority of metropolitan and regional areas of New South Wales have dropped, showing that the rental crisis is deepening,” REINSW CEO Tim McKibbin said.

“Residential vacancies for Sydney overall dropped by 0.4% in September to be just 1.4%. The rate for each of Sydney’s Inner, Middle and Outer Rings fell to 1.7% (-0.4%), 1.2% (-0.3%) and 1.3% (-1.4%) respectively.

“This is the lowest vacancy rate we’ve experienced for Sydney overall for several months.” Similarly, residential vacancies in both the Hunter and Illawarra dropped.

“In the Hunter region, the vacancy rate decreased by 0.2% to be 1.9%,” Mr McKibbin said. “The Illawarra region also fell, now sitting at 1.8% (-0.5%).”

Mirroring Sydney and the major regional metropolitan hubs, vacancy rates dropped across the majority of other areas.

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

Mr McKibbin said that the data once again proves that New South Wales is in the midst of an extreme rental crisis, the likes of which we’ve not experienced in decades.

“There is simply not enough housing to cope with demand and this is putting tremendous pressure on the rental market,” he said.

“Cost of living pressures continue to mount for tenant and landlords alike. Many tenants are staying put, despite rent increases and spiralling costs, for fear they will not be able to secure another suitable property. And, following on from 12 interest rate rises since May 2022, more and more landlords are being forced to significantly increase rents. Alternatively, they’re choosing to sell their investment properties, which are then being scooped up by home buyers, further reducing rental stock.”