NSW’s next Premier faces immediate housing supply and affordability crisis as rental vacancy rates have crashed in Sydney and fallen dramatically in Newcastle less than a week out from the NSW state election.

However, neither candidate has adequately outlined how they will address the problem, according to the state’s peak real estate body.

‘Unfortunately both Labor and Liberal are ‘asleep at the wheel’ when it comes to tackling the housing affordability and availability crisis gripping NSW”, says Real Estate Institute of NSW President Wayne Stewart.

“In 5 days either Kristina Keneally or Barry O’Farrell will be running the state but the electorate has no answers as to how they will reverse the chronic shortage of rental housing in the state.

“Whoever wins Government this Saturday must hit the ground running yet to do that, they actually need to have a plan which voters can scrutinise before the poll.

“In the absence of action, the crisis in housing affordability and availability is having significant negative impacts on the future prospects of NSW both economically and socially.

“The REINSW is seriously concerned about the prospect of the housing crisis driving people from the state simply because they can’t find or afford a place to call home and the new Government will need to act immediately to head off a flood of economic refugees fleeing NSW.

“The rental crisis is a direct result of an inadequate, expensive and complex planning system, and an inequitable property tax regime including high rates of cascading stamp duties and the raft of other imposts including land tax; and the recently introduced ‘ad valorem’ tax.

“All of these factors collectively discourage people from investing in the private rental market and they need to be immediately addressed by the new Premier in the first days of the next Government.

“The simple fact is the situation can be fixed but the Government and Opposition need to have a strategy to do so”, said Mr. Stewart.

Overall the rental vacancy rate in Sydney fell 0.4 per cent to 1.1 per cent in February 2011 whilst in Newcastle the vacancy rate increased by 0.6 per cent to 1.4 per cent.

In Wollongong, rental vacancies remained unchanged for the 3rd consecutive month at 1.3 per cent.

Overall across the Hunter region, the percentage of rental vacancies decreased 1.0 per cent to 1.2 per cent whilst in the Illawarra, the percentage of rental vacancies fell 0.3 per cent to 1.4 per cent.

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