Sunday 24 November 2024
MEDIA RELEASE
Key Workers Locked Out of Sydney
Essential workers – the teachers, nurses, police, and childcare workers that keep our communities running – have been priced out of Greater Sydney’s housing market, with new data revealing the dream of home ownership or affordable rental housing has slipped well beyond their reach.
Property Council of Australia NSW Executive Director Katie Stevenson said the new research comparing median incomes and housing costs in 2024 with the last major housing crisis in 2007 revealed many workers now faced costs significantly more than 30 per cent of household income.
“Greater Sydney’s housing market is fast becoming a no-go zone for essential workers and their families. Recent reforms can help us in the long-term, but we are in a crisis now, and that requires creative solutions to build many more homes, faster,” Ms Stevenson said.
“For example, in Parramatta, while the average household income for essential workers has increased by 87 per cent since 2007, median unit prices have increased 93 per cent and house prices a whopping 248 per cent over the same period. Weekly rents in Parramatta have increased 121 per cent and 117 per cent for a house and unit, respectively.
Ms Stevenson said the Property Council’s report included a clear set of recommendations that, if implemented, could unlock the opportunity for industry to deliver more affordable housing.
“To get more housing moving faster we need more streamlined planning processes, we need to explore more innovative delivery models, and we need a holistic review of the taxes, charges, and compliance costs holding back development, with a focus on reducing these to unlock supply.
“Our recommendations include cutting approval times by at least six months, prioritising rezoning for essential worker and affordable housing near transport hubs, and targeted financial incentives to create housing specifically for essential workers.
“We also need to government accelerate the release of surplus or underutilised publicly owned land for residential development, explore more flexible and innovative financing solutions for affordable housing and commit to a moratorium on new development charges,” she said.
Drawing on data from Pricefinder and CoreLogic, the research examines the affordability of new and established homes and apartments across 12 local government areas (LGAs). The study measured average household incomes for teachers, nurses, police, public servants, and other essential workers, against median housing costs.
“The research paints a dramatic and depressing picture – no essential worker living on their own can afford to buy or rent a median-priced home or unit in most areas,” Ms Stevenson said.
“For dual-income families with an average gross income of $160,000, purchasing an established home is considered beyond reach, and house and land packages are increasingly out of reach.”
The report warns that for most essential workers home ownership is beyond reach, rentals are increasingly unaffordable, single income households face dire choices and consequently NSW risks losing more essential workers to other states or sectors where housing is more affordable.
Breakdown of Worker Types and Affordability:
The report highlights six key worker households in NSW and how their earnings impact their ability to afford housing across 12 locations:
Primary School Teacher and Administrative Assistant – Combined income: $163,616
- Buying: No median-priced house in areas surveyed is affordable for this couple, despite a combined income significantly higher than the NSW average. Units are affordable within the 30% income threshold in only two locations—Penrith and Liverpool.
- Renting: Renting a house is affordable in most areas except for Randwick and Manly. Renting a unit is generally affordable.
Single Income Police Officer – Income: $92,281
- Buying: Completely locked out of buying a median-priced house or unit in any surveyed location apart from Liverpool.
- Renting: Renting a house is unaffordable across all regions, but a two-bedroom unit is affordable in 6 out of 12 locations.
Ambulance Officer and Nurse – Combined income: $158,512
- Buying: Unable to afford a median-priced house in any of the LGAs surveyed. Buying a two-bedroom unit is possible in some areas but not others.
- Renting: Renting a house is affordable in most regions except Randwick and Manly, with renting a unit being their only truly affordable option.
Public Servant – Income: $99,380
- Buying: Neither a house nor a unit is affordable at median prices across all surveyed locations. Half of the locations surveyed need more than 100% of this household’s annual income just to cover mortgage payments.
- Renting: Renting a house is largely unaffordable, with some regions marginally affordable. A two-bedroom unit is unaffordable in half the locations surveyed.
Electrician and Part-time Retail Shop Assistant – Combined income: $146,263
- Buying: Buying a house is beyond reach but not as dire as in 2007. Most units remain unaffordable, though the substantial increase in base income for electricians means there has some improvement since 2007.
- Renting: Renting a house is affordable in most areas, and renting a unit is affordable in all locations surveyed.
Childcare Worker – Income: $58,869
- Buying: Both a house and a unit are completely beyond reach for a childcare worker on this income.
- Renting: Renting either a house or a unit is unaffordable in every surveyed location.