Figures released in July by SQM Research show Sydney remains Australia's most expensive market, with weekly rents almost A$400 higher and the national median asking rent at A$578.63 per week.

SQM Research managing director Christopher Louis said the most expensive rents were for homes in Sydney at A$963.92 per week.

Sydney's housing vacancy rate also fell in July, to 1.6 per cent, the data showed.

Notably, the rental vacancy rate in Sydney's CBD fell back to 5 per cent after continuing to rise month-on-month since March 2023, Mr Lewis said.

This result is somewhat disappointing for tenants after the vacancy rate eased slightly in the first half of 2023. It is clear that we continue to face a significant rental shortage. There is no obvious solution at present other than more people coming together to share the burden.

Mr Lewis said he would advise tenants to consider moving to a regional area if their work commitments allowed them to do so.

According to SQM, rental vacancy rates have remained stable in most regions. The vacancy rate on NSW's North Coast remained at 1.8 per cent, while it dropped to 1.5 per cent in the Blue Mountains.

I would also encourage discussion of a temporary immigration cap rather than a rent cap, which will only exacerbate the rent crisis in the medium term, he said.

This problem is not caused by so-called greedy landlords.

Rather, it is caused by rampant population growth. Australia currently has the fastest growing population of any OECD member country, and it is clear that the population is growing exponentially beyond Australia's capacity to accommodate all of its people.

As of July 2023, the national rental vacancy rate was 1.3 per cent, with 38,864 properties across Australia.