CHIA NSW sounds the alarm as new data shows sharp fall in Sydney’s vacancy rates for rentals

Media release

7 February 2024

The Community Housing Industry Association NSW (CHIA NSW) has called for urgent action on social and affordable housing in NSW, after new data showed a significant downturn in vacancy rates for rentals nationwide, with Sydney bearing the brunt.

According to the latest data release from Proptrack, Sydney’s rental vacancy rates have plummeted to just 1.20%, the sharpest fall in the country.  This comes as January’s median rental prices soared to $900 a week in Sydney on realestate.com, up by 20% on the previous year.

Mark Degotardi, CHIA NSW CEO, said, “These aren’t the records anyone wants to be setting. With vacancy rates at historic lows, families are in desperate need of assistance as there just aren’t enough homes available to rent.”

“With median rental prices soaring to an exorbitant $900 a week, rent has become the primary driver of the cost-of-living crisis across our state. Finding and keeping a home is increasingly out of reach for more and more families,” said Mr Degotardi.

“The nosedive in vacancy rates is the biggest indicator that the private market is failing to properly provide for the needs of the community,

“These vacancy rates will mean rents will continue to rise and more families will need to rely on social and affordable housing. But NSW is woefully unprepared to meet this surging demand.”

Mr Degotardi said that NSW is falling behind other states when it comes to funding in social and affordable housing, despite the ongoing housing crisis.

“Apart from the rental crisis, NSW faces the country’s largest social housing waitlist. People are enduring chronic housing stress, yet the NSW Government’s funding of social and affordable housing consistently falls short.

“We urgently need increased funding for social and affordable housing as a critical step in addressing this crisis. Community housing providers are a key part of the answer, and it’s time for the Minns Government to collaborate with us in crafting tangible solutions to confront this crisis” Mr Degotardi said.

Media contact: Tamara Kotoyan, 0430 291 890