Demand for rental housing was tighter during the New Year as supply failed to meet the rise in demand.

Figures from the Real Estate Institute of New South Wales (REINSW) reported that vacancy rates around the country moved little during November. The rental market was pronounced in Northern Rivers where low income, high demand, and expensive rental rates have aggravated the situation with vacancy rates slowing down from 2.5 percent to 1.7 percent.

In comparison, other major cities like Sydney reported increases in vacancy rates from 1.3 percent from 1.1percent. The Newcastle area came in at 1.8 percent from 1.4 percent while Coffs Harbor and New England came in at 1.9 percent from 1.6 percent.

Monique O'Connor, a Belle Property consultant in Byron Bay told The Northern Star, that there was a shortage in the shire.“We don't have enough permanent accommodation to meet the demand we get, and neither is there enough suitable New Year holiday accommodation to offer visitors,” O'Connor said citing high rental rates in the area. “Byron rentals are expensive. They equate to Sydney prices.

“People expect a lot for that kind of money, “ she added. “But often they can't really afford the rents here and end up sharing.”

The recent slight increases in rental vacancies are not enough to affect the overall market. “While any increase in available rental property is welcome, the small increases recorded in November will simply not make a dent in the deficit between supply and demand,” REINSW president Wayne Stewart said.

He said a “significant intervention by the state and federal governments to make investment in the rental market easier and financially rewarding.”

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