THE best option for people facing “a massive shortage” in rental accommodation might be to move to Queensland, according to Peter Russell, the principal at Integrity Real Estate.
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“It’s been at low levels for a long time, but it’s getting even worse,” Mr Russell said.
“Never before have I seen it at this level, never before have I seen rental costs rising so quickly.”
He revealed his office managed more than 500 rental properties, and last week had none vacant.
Even Navy personnel were struggling to find accommodation, with the Defence Housing Association unable to secure rental houses, while there was stiff competition for any property that did become available.
He gave the example of a house in North Nowra that was recently available, for which 20 people had applied, including three for whom Mr Russell gave personal recommendations based on past dealings.
The home went to a couple who not only had impeccable references, but offered to pay a year’s rent in advance.
“How does your average person compete with that?” Mr Russell asked.
Principal at Ray White Nowra, Scott Baxter, said the situation was not going to get any better within the next few years because NSW faced “a significant housing shortage”.
That shortage had been calculated at 170,000 homes, yet new legislation was set to provide more disincentives for people to invest in providing rental properties, Mr Baxter said.
The levels of costs and taxes imposed in NSW made it difficult for investors to get a return that justified putting money into providing rental accommodation, he said.
