Pensioner Gordon Balfour Haynes lived in the Northern Rivers region of New South Wales for most of his 73 years.
But several months ago he packed up his life and moved 900 kilometres across the country in search of an affordable rental.
The move was prompted by his landlord of five years increasing the rent by $100 a week, to $450, which would account for about 90 per cent of his pension.
He couldn't afford to stay in the property and when he looked in the area for alternatives, there were none.
"Absolutely nothing. The cheapest I could find was about $500 a week and that was for a dog kennel," Mr Haynes said.
National rental vacancy rates fall below 1 per cent
It is a similar story across the country, with national rental vacancy rates falling to 0.9 per cent in August, according to SQM Research.
It is the lowest rate since 2006.
"This is extraordinarily broad-based. And that's something I have not seen before in our data," said SQM Research's Louis Christopher.
"It was a tight rental market back in early 2006, however, I would argue the rental vacancy rates we're recording now are far more tight when you consider a six monthly period."
Louis Christopher says rents continue to go up, with capital city rents up 2.6 per cent in the last 30 days, taking the one year total increase to 20.1 per cent.
"It's one more nail in the coffin of life affordability for the average Australian who is facing pressures on all fronts," said economist Nicky Hutley.
"Rental stress is when you're paying more than 30 per cent of your household income on rent. There are lots of people out there paying 40-50 per cent."
And vacancy rates could get worse, with SQM Research predicting another fall in the September data.
Landlords prefer short term rentals
While there are a number of reasons leading to the low rates (including lack of supply, delay in new builds, changes to lifestyle during COVID-19) much of it is caused by landlords turning to short-term rentals.
"It's pretty clear more and more landlords are deciding to lease their property in the short-term leasing market rather than the long-term leasing market," he said.
That's what Gordon Balfour Haynes thought was happening in the Northern Rivers, which is a popular tourist area.
"Eventually, I concluded that I had to leave the area for somewhere far away and less expensive," he said.
After broadening his search widely, he found a place he could afford in a small village (with only two dozen people) near Cowra in the central west of New South Wales.
"I found it on Gumtree," he explained. "I was hot off the mark in responding."
It has no potable water and the build is unfinished, but it only costs him $225 — far less than his previous rent.
It still accounts for almost half his pension and some of his costs are higher.
"There is more travel involved and buying water, it costs $30 a week to make a cup of tea."
But having used up his savings in extra rent and moving costs, he hopes to stay there for the long term.
