NSW experienced a chronic shortage of rental homes in 2010, according to new figures, leading to calls for measures to stimulate private investment in new home building.

Figures released by the Real Estate Institute of NSW found Sydney’s vacancy rate increased by 0.1 percentage points to 1.4 per cent in December.

Vacancy rates fell 0.3 percentage points in Wollongong to 1.3 per cent and by 0.1 percentage points to 1.7 per cent in Newcastle.

REINSW president Wayne Stewart said teachers, nurses, fire officers and police would struggle to find homes near where they worked.

“Unless we see the introduction of major policy initiatives aimed at encouraging greater investment in the private rental market, 2011 will unfortunately show no improvement in the serious shortage of rental accommodation,” Mr Stewart said.

Source: AFR, Friday 21st Jan 2011 (Ben Hurley)