AAP
Vacancy rates for rental properties in major NSW cities have fallen for the second month in a row as the supply of housing tightens.
The falls recorded by the Real Estate Institute of NSW (REINSW) for the month of February wiped out almost all of the gains seen at the start of 2010, creating a rental crisis.
"Unfortunately, the rental market in our major metropolitan centres has worsened," REINSW president Wayne Stewart said in a statement on Thursday.
In Sydney, rental vacancy rates fell by 0.4 percentage points to 1.3 per cent in February, from January.
Newcastle recorded the worst outcome with vacancies dropping by 1.5 per cent to 1.9 per cent while Wollongong saw a decline of 0.3 per cent to 1.7 per cent.
Mr Stewart said the availability of residential rental properties in February tightened as competition amongst renters heated up as schools and universities reopened and people returned to work from holidays.
Housing supply would a key election issue and the state government must intervene, he said.
"Unless there is dramatic and urgent intervention by the state government to reduce property taxes, simplify planning laws and better utilise our land resources, then NSW will remain in the grip of a rental crisis," he said.
