Housing vacancy rates are at a record low and experts say the market is only going to get tighter.

Rent across two-thirds of Sydney suburbs has jumped by more than 10% in the last year and the median price for a rental now sits at more than $600 a week.

Chief of Economics and Research at Domain, Dr Nicola Powell, says that there are more tenants “competing for fewer rentals”.

“Overseas migrators tend to go to Sydney and Melbourne, and we are seeing the impacts on the rental market,” Dr Powell told Mark Levy.

“Rent bidding means tenants are driving up rent themselves and it’s illegal.”

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