The latest data suggests a ray of hope for renters in 2024, as the vacancy rate for housing in Sydney has improved slightly. Although the vacancy rate has increased slightly, the market remains highly tense, and renters will still face some challenges.

Data from PropTrack shows that the vacancy rate for rental properties in December has increased slightly to 1.37%. While a vacancy rate of 2%-3% is considered normal, experts note that the market remains highly tense.

After experiencing a challenging 2023, the lack of available rental properties in the market will continue to drive up prices, making this year potentially a period of market stabilization.

Eleanor Creagh, an economist at PropTrack, stated that the market remained consistently tight throughout 2023, albeit not as pronounced as in 2022. Renters will continue to face challenging conditions and genuine competition for existing housing, although December might be a slightly easier period for potential renters. The period from February to March is typically the busiest time in the rental market, and December offers a bit of respite for potential renters.

However, the vacancy rate in December 2022 continued to decline, indicating that Sydney renters may experience some relief in the new year. With the worsening conditions in the rental market in 2022 and 2023, along with a slight slowdown in net migration, there may be a period where the deterioration in the rental market is not as rapid as it is now. The market may begin to stabilize.

The vacancy rate is lowest in the Northern Beaches at 0.69%, followed by Sutherland at 0.79% and the Central Coast at 0.96%. Renters looking to leave the harbor city for better chances of finding a rental property also face challenges in other regions nationwide. Brisbane, Perth, and Adelaide have the tightest markets, with vacancy rates of 0.9%, 0.73%, and 0.69%, respectively, all below 1%.

Ms. Creagh noted that when examining property conditions in other markets nationwide, they offer discounts on prices, and rental prices are no exception. However, when the conditions for available properties are so challenging, the situation is difficult nationwide. While the national vacancy rate slightly increased in December, it still decreased by 0.13% in 2023. Population growth has slowed slightly, but more supply is still needed.

Ms. Creagh said that they see a slight pickup in investor activity, but it has not reached the required levels, and the pace of new home construction has also slowed. Therefore, while there is a ray of hope, the rental market still poses some challenges.

For Sydney renters, 2024 might be a relatively stable year, but competition for existing housing will still be a factor. Rental markets in other areas such as Brisbane, Perth, and Adelaide are also tight, with vacancy rates below 1%. Hence, despite a glimmer of hope, the rental market still presents some challenges.