After a brief hiatus in August where vacancy rates seemed to level out, September saw yet another drop in Sydney.

“The vacancy rate for Sydney overall dropped by 0.1% to be just 1.6%,” REINSW CEO Tim McKibbin said. “The drop is attributable to vacancies in the Inner, Middle and Outer Rings each dropping by 0.1% to be 2.1%, 1.1% and 1.5% respectively.

“Vacancies in Sydney really are at a historical low. Not since November 2013, almost nine years ago, have we seen the residential vacancy rate for Sydney overall as low as 1.6%.”

Outside Sydney, finding a home to rent continues to present a real challenge for tenants.

“Vacancy rates in the Hunter region and Wollongong remained stable at 1.4% and 1.1% respectively, and regional areas across the state continue to be extremely tight,” Mr McKibbin said.

“These latest results show that there’s no denying that a rental crisis continues to grip New South Wales.

“Cost-of-living pressures continue to mount for tenants and landlords alike, and recent interest rate hikes will undoubtedly put pressure on some landlords to increase rents.

“Undoubtedly, many tenants would embrace the opportunity to secure a more affordable rental property. However, despite rent increases, they’re choosing to stay put because they’re just not confident that they’ll be able to secure another property.

“Supply continues to be the key problem. In short, there is simply not enough housing to cope with demand and this is putting tremendous pressure on the rental market.”

“It’s difficult to see how the rental crisis will ease anytime soon.”