Rental market remains in crisis with no end in sight

  • Written by: REINSW

Securing a rental property continues to be an extreme challenge for tenants. Vacancy rates  are hovering at crisis 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. “Over the last month, residential vacancy rates for Sydney overall tightened  by 0.1% to be 1.8%. Vacancies dropped dramatically in the Inner Ring of Sydney to be  2.0% (-0.7%), while both the Middle and Outer Rings increased to be 1.9% (+0.4%) and  1.6% (+0.2%) respectively.

Residential rental vacancies in the Hunter region experienced a slight uptick, however the  Illawarra region dropped back.

“In the Hunter region, the vacancy rate rose by 0.2% to be 1.6%,” Mr McKibbin said. “In  contrast, vacancies in the Illawarra region dropped to 1.4% (-0.1%).”

Results of the survey across regional areas were a mixed bag, with fluctuations across all  areas.

“Vacancy rates in the Albury, Central West, Murrumbidgee, New England, Orana, Riverina  and South East areas all increased slightly over the last month,” Mr McKibbin said. “The  Central Coast, Coffs Harbour, Northern Rivers and South Coast dropped, with the Mid-North  Coast remaining stable.

“Fluctuations in vacancy rates from month to month are to be expected and any increase in  the availability of rental accommodation is welcomed. However, the increases we’re seeing  in some areas do little to put a dent in the rental crisis.

“The simple fact is that demand for rental accommodation continues to outstrip supply.  Many REINSW members are reporting that landlords are exiting the market in favour of  more attractive investment options. There is simply not enough housing to cope with  demand and this is putting tremendous pressure on the rental market.”