Angus Moore, an economist at PropTrack, pointed out that as tenant demand continues to rise, the shortage of vacant properties will make life increasingly difficult for renters. He warned that rent pressure may continue to intensify, becoming one of the most severe challenges faced by renters. Compared to the same period last year, the vacancy rate in February decreased by 0.3%, further highlighting the heatedness of the market.

Since 2020, the vacancy rate in Sydney has continued to decline, highlighting the challenges faced by renters. Moore believes that population growth and insufficient housing construction are among the complex factors contributing to the low vacancy rate. He pointed out that the number of houses built in Sydney differs significantly from the past, and the pandemic has also brought challenges to procurement of materials, leading to continued high construction costs.

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The most challenging areas in Sydney include Chatswood, Northern Beaches, and Central Coast, where there are hardly any rental properties available. Moore pointed out that the market tension varies little across Sydney's various regions, with almost all areas experiencing tightness. In this situation, renters may consider shared accommodation as a way to alleviate rent challenges.

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Additionally, some Sydney residents may also consider turning to other cities such as Adelaide and Perth to find more affordable rental markets. However, rents in these cities are also on the rise. Although the New South Wales region remains challenging for renters, the availability of rental properties has slightly increased compared to 2021, possibly due to many people choosing to leave the city during the pandemic.

The government has set a target to build 1.2 million new homes over the next five years, but this effort has not yet fully translated into increased housing supply. Moore stated that construction of homes currently takes longer than before, requiring more action to address the shortage of housing supply. Overall, the Sydney rental market urgently needs more housing supply, which is the only way to continuously improve the tense market situation.