Can't buy, can't rent

A good article in the Daily Telegraph reports:
An influx of investors dominating the market has trapped young Sydneysiders in an unusual predicament - unable either to buy or rent a property.
Normally many buyers are renters moving into home ownership, leaving a vacant property available.  But increasingly buyers are investors, who put their properties on the market at a rental reflecting the need to recover their investment.
House prices have gone up dramatically, but the normal increase in rental property from investors buying houses has not resulted.
REINSW statistics show vacancy rates are down to 1.4% in March, the lowest since November 2011.