Sydney rental crisis deepens as available properties plummet

The rental crisis in Sydney continues unabated as new data shows a significant decrease in available rental properties. The latest Market Insight Report by PropTrack has revealed that the number of new rental listings on realestate.com.au experienced a sharp decline of 17 percent in April, reaching its lowest point since April 2012. Additionally, the total number of rental listings across Sydney on realestate.com.au decreased by 7.8 percent in April, marking another record low since December 2012. These figures provide further evidence of the dire situation faced by individuals searching for rental accommodations in Sydney.

This downward trend of rental listings has much significance. While April is known to typically be a month for decreases in rental listings, the drop observed in Sydney has been substantial. Furthermore, a noteworthy aspect is the overall decrease in the availability of rental properties in Sydney, which has decreased by 15.7 percent compared to the same period twelve months ago. This decline underscores the challenging situation faced by renters in finding suitable accommodations.

Experts have expressed concern about both the diminishing number of rental listings and the decreasing number of new listings in Sydney. Compared to the beginning of the pandemic, the availability of rental properties has diminished by 42.7 percent. These circumstances create favourable conditions for landlords to increase rent but make it challenging for people to find available rental properties.

While new listings were lower, there was a slight rise in the total number of rental listings, particularly noticeable when considering the inner-city areas. Nonetheless, when compared to the same period a year ago, there has been a significant decrease in the availability of rental properties across Sydney, especially in the inner-city areas.

In the past year, the eastern suburbs experienced a decline of 21.2 percent in available rental properties, while the inner southwest saw a decrease of 34.1 percent, the inner west declined by 27.4 percent, and Parramatta experienced a drop of 29.6 percent in available rental properties.

There is still a significant number of individuals selling their investment properties, and there is a steady influx of people entering the country from overseas. Another major factor is the difficulty faced by renters in transitioning from renting to purchasing their first home. Despite the rapid rise in rents, it generally remains more affordable to rent than to service a mortgage.

Moreover, there is an increased risk of homelessness, particularly among individuals who are unemployed and reliant on government support payments, as well as essential workers. While rent bidding is officially prohibited, the reality is that those who can offer higher than the advertised rent has a better chance of securing a property. Unfortunately, individuals with lower incomes do not have the luxury of competing in this manner. The report also highlighted a decline in new rental listings in regional NSW, with a decrease of 17.2 percent in April.

A key finding of the PropTrack report emphasized the lack of imminent increase in rental supply, which would continue to keep the number of available rentals low and intensify competition among renters. Although there is significant housing construction underway, most of it is aimed at owner-occupiers. While the concept of build-to-rent is emerging, it is considered a premium product and not available in large quantities.

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Sydney rental crisis deepens as available properties plummet

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