Four Hunter locations have made the list of areas that are experiencing the highest levels of rental pain in the state.
The January Suburbtrends Rental Pain Index shows Beresfield-Hexham, Waratah-North Lambton, Raymond Terrace and Belmont-Bennetts Green all had rental pain scores of 95 or over out of 100.
The index weighs up rent increases, rental availability and average incomes.
Beresfield-Hexham was the sixth highest suburb cluster with a rental pain index rating of 99. The cluster had a similar ranking to areas outside the region including Warwick Farm, Redfern, Dapto and Merrylands.
Rents in the area increased 9 per cent over the past 12 months and consumed 36 per cent of incomes. The area's vacancy rate was 0.62 per cent.
Waratah-North Lambton (rental pain ranking 97) , which houses thousands of university students, had a 0.69 per cent vacancy rate.
Rents increased by 9 per cent and consumed 32 per cent of an average income.
Rents in Raymond Terrace (rental pain ranking 96) increased by 8 per cent but consumed 39 per cent of an average income. The area's vacancy rate was 0.97 per cent.
Similarly, rents increased in Belmont (rental pain ranking 95) by 4 per cent and consumed 34 per cent of incomes. The vacancy rate was 0.98 per cent.
Suburbtrends founder Kent Lardner said the latest data showed a deepening crisis, with a significant percentage of suburbs in extreme rental pain.
"Our January report shows an unprecedented level of rental stress," he said.
"As we begin 2024, the Rental Pain Index serves as a crucial indicator of the hardships faced by renters across Australia.
"The data calls for urgent, multifaceted policy solutions to address the soaring rental costs and limited housing availability. It's time to turn these insights into action."
The Newcastle Herald reported last week that the median national rent increased 1.8 per cent over the December quarter to $580.
This is an 11.5 per cent increase compared to the previous year, which means rents are $60 more expensive a week than they were in early 2023.
"Rental markets are extremely challenging for renters, with rents continuing to grow very quickly across much of the country," PropTrack economist Angus Moore said.
"As we head into what is typically the busiest time of year for rental markets in January, renters will, unfortunately, continue to face growing rents."
But Mr Moore said renters may find relief on the horizon.
"The fact that we're starting to see rent growth slow could be a sign that we're going to start to see that kind of filtering out more broadly - maybe later in the year," he said.
