Pacific Hwy Upgrades 'To See Vacancy Rates Drop'

Upgrades to infrastructure are leading to fluctuations in the vacancy rates of parts of New South Wales, as transient workers look for temporary accommodation.

That's the assessment of the Real Estate of New South Wales' (REINSW) president, Christian Payne, who explained to the ABC that upcoming work to the Pacific Highway will see increased demand for rental properties in Coffs Harbour.

The REINSW explained that February vacancy rates show that the Coffs Harbour area has the highest vacancy rate in the state.

Mr Payne suggested that Kempsey may see an easing in rental tightness as works on the highway move to other areas.

"Noting that the Kempsey bypass is opening now as well, that that transient population may move out," he said.

"That could also have an effect of freeing up some of the accommodation and in turn spill over and effect an increase in the vacancy rates as a result."

Coffs Harbour is also susceptible to vacancy rate fluctuations as a result of other factors, such as university students and holidaymakers going to and from the vacation spot.

To put it into perspective, Coffs Harbour's vacancy rate is 3.9 per cent, while the tightest rental area is Orana on 1.1 per cent.