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Vacancies in NSW remain at crisis levels following a surge in demand and rising rental prices, squeezing the market further.
The Real Estate Institute of NSW (REINSW) June 2025 Vacancy Rate Survey revealed that residential vacancy rates across NSW have long sat below healthy levels, intensifying concerns over housing availability.
Data showed that in June, the overall residential vacancy rate in Sydney remained stable at 1.7 per cent.
With vacancies in Sydney consistently under 2 per cent, the REINSW has raised the alarm over the lack of improvement in the city’s rental market over the last few years.
According to industry standards, a healthy rental vacancy rate sits between 3 per cent and 3.5 per cent, signalling a balanced market with sufficient availability and minimal pressure on tenants or landlords.
REINSW CEO, Tim McKibbin, said over the past three years, Sydney’s vacancy rate has only exceeded 2 per cent once, in December 2024.
“Before that, the last time it was above 2 per cent was in June 2022,” he said.
Vacancies in the inner ring – including the local government areas of Ashfield, Botany Bay, Lane Cove, Leichhardt, Marrickville, Mosman, North Sydney, Randwick, Sydney, Waverley, and Woollahra – remained stable at 2 per cent.
Meanwhile those in the middle ring – including Auburn, Bankstown, Burwood, Canterbury, Canada Bay, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Manly, Parramatta, Rockdale, Ryde, Strathfield, and Willoughby – dropped by 0.2 per cent to 1.2 per cent.
On the other hand, vacancies in the outer ring – including Baulkham Hills, Blacktown, Blue Mountains, Camden, Campbelltown, Fairfield, Gosford, Hawkesbury, Holroyd, Hornsby, Liverpool, Penrith, and more – rose by 0.1 per cent to 1.7 per cent.
Total residential rental vacancies in the Hunter region fell slightly by 0.2 per cent to 1.5 per cent, while those in the Illawarra region remained stable at 2 per cent.
As for wider regional NSW, the report revealed vacancy rates remained extremely tight.
“Vacancy rates in the Albury, Central Coast, Mid-North Coast, Murrumbidgee, New England, and Orana areas all recorded drops,” McKibbin said.
“The Central West, Coffs Harbour, Northern Rivers, Riverina, South Coast, and South East areas each eased slightly.”
McKibbin said the outlook was bleak for prospective tenants as low vacancy levels put immense pressure on the rental market.
“Month after month, the situation remains unchanged – rental availability continues to decline while rents keep climbing,” he said.
“It’s easy to understand why so many in the residential rental market are feeling deeply disheartened.”
“There simply isn’t enough housing to meet demand and this is placing enormous strain on the rental market,” McKibbin concluded.
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