New data reveals where rental pressure is hitting hard across NSW

New data has revealed the NSW suburbs where rental pressures are highest, with greater Western Sydney copping the brunt of it.

A 100m long line of people looking for rental housing in Sydney. Picture: Chris Pavlich

Limited stock, high rents and more and more competition continues to plague the rental market across NSW.

New data from Suburbtrends Rental Pain Index has revealed the top NSW suburbs where rental pressures are highest with greater Western Sydney heavily featured on the pain scale.

The Riverina suburb of Deniliquin topped the list with an 18 per cent average rental increase over the past year compared to a tiny 0.4 per cent vacancy rate.

This was followed by greater Western Sydney suburbs of Bankstown, Auburn and Punchbowl along with northern Wollongong suburbs of Corrimal, Tarrawanna and Bellambi in the Illawarra region.

Sydneysiders pictured lined up outside an open-for-inspection rental apartment. Picture: Nicholas Eagar

Rental stress is impacting more and more people across NSW.

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“The Rental Pain Index, a metric that measures the financial strain of renting, is highest in QLD, followed by SA and NSW,” Suburbtrends founder Kent Lardner said.

“This suggests that tenants in these states are feeling the greatest ‘rent pain’ at present.”

Four NSW suburbs recorded annual rent increases of 20 per cent or above including Belmore, Belfield, Auburn, Lakemba and Punchbowl.

Lowest vacancy rates were in Lakemba, Auburn, Bankstown, Deniliquin, Belmore and Belfield.

Mr Lardner said the analysis comparing factors such as the percentage of advertised rentals, vacancy rates, average 12-month rental increase and average rent as a percentage of income.

Suburbtrends founder Kent Lardner.

“While these numbers give us a snapshot of the current state of affairs, it’s crucial to remember that the rental market is complex and ever-changing,” he said.

“Factors such as economic conditions, population growth, and housing policies all play a role.”

NSW suburbs with highest rental pressures

• Deniliquin

• Bankstown

• Auburn

• Punchbowl

• Corrimal – Tarrawanna – Bellambi

• Lakemba

• Monterey – Brighton-Le-Sands – Kyeemagh

• Sans Souci – Ramsgate

• Greenfield Park – Prairiewood

• Bega – Tathra

Vacancy rates have slightly risen across Sydney. Picture: Gaye Gerard

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It comes as PropTrack reveals rental vacancy rates “increased slightly” in June across Sydney, up 0.05 percentage points (ppt) to sit at 1.73 per cent.

The PropTrack Market Insight report indicated there had been an increase of 0.28 ppt over the past three months for the Harbour City however vacancy rates remains down 0.34 ppt annually.

“The 0.28 ppt quarterly increase is a positive sign of relief for renters,” PropTrack senior economist Paul Ryan said.

“This is the most significant easing in rental market conditions since early in the pandemic in November 2020.

“Slowing rental demand has resulted in more rental properties being available for lease.

“Despite this modest improvement, conditions remain extremely tight for renters, as Sydney’s rental vacancy rate has halved on pre-pandemic levels.

“It remains difficult to find a rental across the country and we expect rents to continue to grow quickly, placing additional financial pressure on renters.”

In regional NSW, the vacancy rate remained relatively unchanged in June.

Originally published as New data reveals where rental pressure is hitting hard across NSW