This report examines the range of rent regulations in place internationally and present considerations for how rent regulation might be implemented in New South Wales (NSW). It highlights key considerations for rent regulation in NSW given the characteristics of the state’s private rental sector and conclude with recommendations based on these characteristics and the report’s findings.

Rents in Australia’s private rental sector (PRS) have risen sharply in 2022 and 2023. Low vacancy rates and slow construction have led many to predict further rent increases over the coming years. It is widely acknowledged that Australia faces a rental affordability crisis, one that is most severe for lower income households. This crisis has prompted debate about the merits of rent regulation.

Across the range of regulations, three generalised approaches that emphasise different, albeit overlapping objectives:

1. Regulations for sector-wide rent stabilisation cover the entire PRS and apply between tenancies as well as within tenancies.
2. Regulations for security of tenure restrict rent increases within tenancies across the entire PRS so that security of tenure is not undermined by sharply rising costs. 
3. Regulations for lower-income housing affordability place limits on rent increases for part of the PRS that is more likely to house lower-income renters, while leaving the remainder unregulated.