Real Estate

Lack of supply heralding rental crisis

AFTER a brief reprieve last month, the latest Real Estate Institute of NSW (REINSW) Vacancy Rate Survey results show that residential vacancies in Sydney have once again taken a dive.

REINSW CEO Tim McKibbin said the vacancy rate for Sydney overall dropped by 0.3 per cent for the month to be just 1.7 per cent.
“The drop brings the residential vacancy rate to its lowest level in almost five and a half years, when it sat at 1.7 per cent in August 2017,” he said.
“This really is a historical low for Sydney and shows that the rental crisis has definitely taken hold.”
Vacancy rates across regional NSW were a mixed bag, with some areas easing and others tightening. Rates in the Hunter decreased, while the Illawarra increased.
McKibbin says REINSW members are saying that they’ve never experienced such a lack of supply.
“The shortage of stock is extreme and there’s no denying that the rental crisis is real,” he said.
“In the face of cost-of-living pressures, 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.
“It’s a very stressful time for tenants.”