NSW Vacancy Rates Hold Steady as Market Remains Tight

The latest REINSW Vacancy Rate Survey for October 2025 reveals that New South Wales’ rental market remains tight, with minimal change in vacancy levels across most regions. Despite seasonal fluctuations, demand for rental properties continues to outstrip supply, keeping vacancy rates low throughout the state.

Sydney Snapshot

Sydney’s overall vacancy rate held steady at 1.8%, reflecting sustained demand across the metropolitan area.

Inner Sydney rose slightly to 2.1%, a marginal softening likely due to new apartment stock coming online.
Middle Sydney remained at 1.4%, while Outer Sydney stayed consistent at 1.8%, showing that tenants are continuing to seek affordable options in suburban areas.

These figures highlight a stable yet competitive environment for renters, with limited relief in sight for those seeking new tenancies.

Regional Trends

Across regional NSW, the picture remains mixed but generally tight:

Hunter Region: Dropped sharply to 1.2% from 1.7% the previous month, led by a fall in Newcastle vacancies (2.1% down from 1.8%).
Illawarra: Also eased to 1.2%, suggesting consistent tenant demand, particularly in Wollongong.
Central Coast reported a moderate 1.4%, while Orana recorded one of the highest regional vacancy rates at 2.7%.
Meanwhile, Riverina remained exceptionally tight at 0.4%, one of the lowest across the state.

The data shows ongoing housing pressure in key lifestyle and employment hubs, reinforcing the long-term demand drivers in both metropolitan and regional centres.

Statewide Overview

Across New South Wales, vacancy rates generally sit between 1% and 2%, well below the level considered indicative of a balanced rental market (around 3%).
These persistently low figures suggest that:

Renters continue to face strong competition for available properties.
Property investors are enjoying minimal downtime between tenancies.
Market conditions remain favourable for landlords seeking stable rental income.

What this means for Property Owners and Tenants

For property owners, these figures signal a continued opportunity to maximise rental returns. With demand outpacing supply, well-maintained and professionally managed properties are being leased quickly.
For tenants, early preparation, strong rental applications, and flexibility remain key in securing desirable properties.

About the Survey

The October 2025 REINSW survey is based on data from over 146,000 rental properties across New South Wales. The vacancy rate represents the proportion of unlet dwellings relative to total managed properties, providing a snapshot of the rental market’s health and balance.

Need expert property management advice? At BTR Group, we specialise in maximising rental performance while ensuring compliance, tenant care, and peace of mind for our owners.

NSW Vacancy Rates Hold Steady as Market Remains Tight - October 2025 Updates