Rental vacancy data in November 2022 showed that the New South Wales is at an “extreme” rental crisis, as vacancy rates dip to levels not seen in decades.
According to the Real Estate Institute of New South Wales (REINSW), Sydney’s vacancy rate declined to a historical low of 1.6% in November.
The last time vacancy rates in Sydney reached 1.6% was in November 2013.
REINSW CEO Tim McKibbin said securing a rental property remains a challenge for tenants not just in Sydney but across the state.
“Residential vacancies dropped across the state, with most metropolitan and regional areas continuing to experience diminishing stock levels coupled with unprecedented demand,” he said.
Outside Sydney, the Hunter region posted an increase in vacancy rate, which hit 1.5% in the month.
The Central Coast, Central West, and Murrumbidgee areas also saw slight improvements in the availability of rental accommodation.
However, all other regional areas posted a decline in vacancy rates in November.
Mr McKibbin said there is a tremendous pressure on the rental market and the available housing is not enough to cope with the demand.
“Many tenants are staying put, despite rent increases and other spiralling costs, for fear they will not be able to secure another suitable property,” he said.
“And, in the face of eight consecutive interest rate rises, more and more landlords are being forced to significantly increase rents.”
Some challenged investors, on the other hand, are choosing to sell their investment properties — while this frees up supply for potential first-time buyers, it further reduces rental stock.
“Cost-of-living pressures continue to mount for tenants and landlords alike. What we’re currently experiencing is truly unprecedented,” he said.
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