A chronic shortage in available rental properties is now a permanent fact of life in New South Wales three major metropolitan centres, the Real Estate Institute of NSW (REINSW) says.

The latest rental data released by the REINSW show vacancies in September deteriorated across Sydney, Newcastle and Wollongong.

The overall rental vacancy rate in Sydney fell 0.3 per cent to 1.2 per cent percent in September.

Newcastle recorded the greatest fall of the three major urban centres in the state, dropping 0.5 per cent to 1.2 per cent. Wollongong also deteriorated, falling 0.2 per cent to 1.8 per cent.

"Unfortunately the rental market in our major metropolitan centres has worsened in

September and the prospects for renters no matter where they choose to live are grim indeed", said REINSW President Wayne Stewart.

"And for those people coming from other parts of the state or Australia to live in Sydney, Newcastle and Wollongong the message is blunt - organise rental accommodation well in advance.

"As more and more people move to our urban centres, available property will not only become scarcer but more expensive.

"We need dramatic and urgent intervention by the state government to reduce property related taxes, simplify planning laws and better utilise our land resources to meet current and future demand.

"This is a fundamental issue for the 2011 State Election with voters looking for a long term solution to this crisis", said Mr. Stewart.

Decreases in rental vacancies were recorded in the following areas of Sydney:

'Outer' suburbs (More than 25 km from CBD) fell 0.3 per cent to 1.1 per cent

'Middle' suburbs (10-25km from CBD) which fell 0.4 per cent to 1.4 per cent

Sydney's 'Inner suburbs' (0 to 10km from CBD) remained unchanged at 1.3 per cent

Overall across the Hunter region, the percentage of rental vacancies decreased 0.5 per cent to 1.3 per cent whilst in the Illawarra, the percentage of rental vacancies fell 0.2 per cent to 1.6 per cent.

Central Coast rental vacancies fell 0.6 per cent to 1.6 per cent for September