Media Archive / NSW Slips Further Into Housing Crisis With the Lowest Vacancy Rates and Highest Rents Ever Recorded

NSW Slips Further Into Housing Crisis With the Lowest Vacancy Rates and Highest Rents Ever Recorded

Data announced today by CoreLogic has revealed that the rental market is officially at its tightest ever point in NSW, with vacancies officially dropping below 1% in Sydney for the first time. As a result, unit rents have risen nearly 17% over the last year, which is outpacing growth in any other capital city.  National data shows an increase of 13.7% the highest annual rental growth ever recorded.

“UDIA NSW has been strongly advocating in the lead up to the NSW State Election, now less than a week away, for the Government to look at supply side measures to help alleviate the rental crisis being felt across NSW. In our Election Campaign Manifesto – Let’s Tackle the Housing Shortage, we outlined 12 key recommendations to encourage the Government to introduce policies that will overcome the supply crisis being felt across the housing continuum in NSW,” said Steve Mann, CEO, UDIA NSW.

To overcome the supply and cost pressures being faced in the rental market, apartments must get moving again, outlined below are three of UDIA’s key recommendations:

  • Government to address the obstacles that are inhibiting apartment construction by boosting presales through the removal of the foreign investor surcharge and introducing a rebate on transfer duties.
  • Traditional commercial centres are rezoned to allow for more vibrant mixed-use precincts to house the population and achieve economic prosperity. Previous UDIA research with Value Advisory Partners has showed that, historically, mixed-use precincts with innovative and tech-centric jobs experience higher growth rates than sterilised, traditional industrial zones.
  • Develop appropriate incentive-based policies that enable private developers to deliver 2 to 3 times more social and affordable housing than is current being supplied in NSW.

UDIA’s recommendations are backed by evidence-based research into the constraints holding back the delivery of well located, affordable, and sustainable homes from being delivered across the state. We hope that this election will bring these issues firmly into the public realm, so that Government can begin to address the backlog of homes that our growing population demands.

“UDIA calls on whichever party takes power post-Election, to commit to addressing the housing shortage so that the people of NSW can afford to live in well located, vibrant and connected cities across the state. said Mr Mann.”


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