The Real Estate Institute of NSW is saying that the rental issue has reached a new high. It seems to be getting just worse and worse with no respite in sight. This is due to the fact that a record number of residents of the state of New South Wales are defaulting on their mortgage payments. The recent figures that were issued in July show that there has been a slight improvement in the rental vacancies in Sydney. It has shown an improvement of 0.1 percent to 1.2 percent. The report also points to the fact that there is a marginal increase in rents in the Sydney area. The average weekly rent has jumped by twenty dollars in the June quarter. Tim McKibbin, of the Real Estate Institute of NSW is of the opinion that the high mortgage defaulters will only over burden the already strained rental market scenario. He says that the defaulters are coming and looking for accommodation in this strained market and further pressurizing it. Such situation not only depresses the market place but also brings about a lot of upheaval in the defaulters life. Already the individual is reeling under the stress of defaulting on the mortgage payment, looking around for a decent accommodation in the high priced rental market is adding to his burden.

Mr McKibbin wants the government to play a very active role in bringing about a solution for the rental crisis. They should do something that will encourage people to invest in the housing sector. Investments to the housing sector are deterred by the high land tax and stamp duty tax. If the governments does something to bring down these taxes may be people will be encouraged to invest in new housing, as then affording a house will seem within reach. Matt Brown, The housing Minister for New South Wales is quick to defend the government  by saying that a quick fix solution is not in the offing. There is not enough supply of houses to bring down the housing affordability rate. The main reason why the supply of houses is less is that the interest rate is very high. This is discouraging people from investing in the housing sector.

The problem needs to be tackled by all the levels of the government. A quick fix solution by a single organization is not possible to tackle the problem. To avoid defaults an individual need to seek the advice of investment advisors who will help them manage the household budget. This was the message that Mr. Brown was giving out. The individuals can also avail interest free loans to pay mortgages while staying on in their houses. There are other household loans too that they can avail. This in many ways can ease the rental crisis as the burden of defaulters on rental market will come down to a great extent.