Vacancy rates remain critically low in many parts of NSW, according to a new report that has exposed the Aussie suburbs where rents are set to grow in 2026.
InvestorKit’s rental whitepaper has revealed the Aussie suburbs where renters face the toughest test to find accommodation, with one Sydney suburb standing out as being at “crisis level”.
While the report found the NSW rental market was easing in terms of price growth, renters still face a highly competitive and constrained environment, a landscape which is expected to remain the same throughout 2026.
Camden has been revealed as the hardest place to rent in Sydney, with a vacancy rate of 0.39 per cent. Picture: Maksym Kozlenko/Wikimedia Commons
The suburb is located in Sydney’s South West, near Campbelltown. Picture: Google Maps
Western Sydney renters were found to be under particular pressure, particularly in Camden, 65km southwest of the CBD.
InvestorKit CEO Arjun Paliwal said areas like Camden were experiencing “crisis-level” vacancy rates, with very limited new housing supply coming online.
The vacancy rate in Camden has been under 0.5 per cent in recent years, currently sitting at just 0.39 per cent.
Established supply in the suburb has remained at a low level over the years, according to Mr Paliwal, while incoming supply has decreased progressively.
Rents in Camden have increased by 5.8 per cent over the past 12 months, to an average of $713 per week.
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This four-bedroom home on Starr Cl is one of few current listings in Camden, currently listed for $965-per-week
With extremely low vacancy rates, limited new supply and relative affordability, rental prices are expected to continue to grow healthily in the year ahead.
Nationally, Mr Paliwal said vacancy rates remain low.
“Rental growth across Australia has moderated, but with vacancy rates sitting under one per cent nationally, it’s still well below a balanced market,” he said.
“While the pace of rental growth may have eased, the underlying structural pressures remain firmly in place.”
Though growth has moderated, rents are continuing to increase around five-to-six per cent annually in key NSW areas, driven by low supply.
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InvestorKit CEO Arjun Paliwal said vacancy rates sit below one per cent nationally. Picture: Supplied
According to the report, new housing construction has not kept up with demand, leaving rental listings below pre-Covid levels.
“This is a structural problem, not a short-term spike,” Mr Paliwal said.
“Higher interest rates are making it harder to buy, keeping more households in the rental market and adding further pressure.”
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