Residential rental vacancies have increased marginally across Sydney, but experts warn the rental crisis continues to worsen.
The Real Estate Institute of New South Wales (REINSW) Vacancy Rate Survey for September 2024 shows a slight uptick in available rentals in the Sydney metropolitan area.
However, REINSW CEO Tim McKibbin said that this small increase does little to alleviate the ongoing rental crisis.
“These slight increases do not dent the escalating rental crisis,” Mr McKibbin said.
The overall vacancy rate for Sydney rose by 0.1 per cent to 1.9 per cent.
The Inner Ring of Sydney saw a 0.1 per cent increase to 2.7 per cent, while the Middle and Outer Rings remained stable at 1.5 per cent and 1.4 per cent respectively.
Similar minor increases were observed in the Hunter and Illawarra regions, both rising by 0.1 per cent to reach 1.4 per cent and 1.5 per cent respectively.
However, the situation in regional areas tells a different story, with many areas experiencing tightening rental markets.
Vacancy rates dropped in Albury, Central Coast, Central West, New England, Northern Rivers, Orana, Riverina and South Coast areas.
Mr McKibbin said that the latest results highlight the ongoing challenges in the residential rental market.
“Demand continues to drastically outstrip supply and securing appropriate rental accommodation remains a pipedream for many tenants as weekly rents continue to rise,” he said.
The REINSW is also warning against proposed rental reforms, on the back of negative experiences in Victoria and New Zealand.
In Victoria, nearly 22,000 rental properties were removed from the market this year following the introduction of anti-landlord legislation.
Mr McKibbin said that similar reforms in NSW could exacerbate the rental crisis by driving investors away from the market.
“The rental reforms the NSW Government has signalled its intention to pursue will result in more investors selling up or opting for a short-term accommodation strategy, both of which remove more properties from the private rental market,” Mr McKibbin said.
He said the need for solutions that increase rental supply, including new development, reducing planning delays, and making residential property investment more attractive.
“To solve the rental crisis we need to increase rental supply,” he said.
“This means new development, eradicating planning delays, and making it attractive to investors to invest in residential property.”
