PHOTO: Sydney’s lifestyle is having a massive effect on house prices globally. FILE
According to a recent report from the Committee of Sydney, Sydney now ranks as the sixth most expensive city globally for housing, surpassing renowned metropolises like New York, London, Paris, and Los Angeles.
This report highlights the severity of Sydney’s housing crisis, estimating that it costs the city a staggering $10 billion annually in terms of lost talent, diminished productivity, and reduced innovation. Astonishingly, the average home in Sydney is priced at over 13 times the median salary, emphasizing that this housing issue is not a fleeting problem but rather a chronic one that poses a substantial long-term threat to the city’s future, as explained by Eamon Waterford, the committee’s CEO.
The repercussions of this crisis are especially felt by young Sydneysiders who are just embarking on their careers, hindering their access to opportunities that would be more attainable if housing were more accessible and affordable. Waterford emphasized the urgent need for sustained action to prevent chronic housing unaffordability from eroding Sydney’s global competitiveness and long-term economic success.
The report highlights a significant out-migration of younger individuals seeking more affordable locations or struggling with decreased productivity due to the lack of affordable accommodation close to their workplaces. The report quantifies these issues, citing $1.5 billion in lost talent due to out-migration and decreased attractiveness, along with $6.8 billion in lost productivity and $2.9 billion in reduced innovation, including fewer patents and start-ups.
Furthermore, rental availability and affordability have reached crisis levels, with 35.3 percent of Sydney renter households experiencing rental stress, where more than 30 percent of their monthly income is spent on housing costs.
To address these pressing challenges, the report recommends three key actions: implementing an inclusionary zoning target to ensure affordable housing in new developments during rezonings, increased government investment in social and affordable housing, and a significant boost in the supply of high-quality housing with convenient access to transportation, green spaces, schools, childcare facilities, shops, and other essential services.
Eamon Waterford underscores the importance of a bold, long-term commitment to tackle Sydney’s chronic housing crisis, recognizing that while it may not be resolved overnight, a comprehensive program is necessary to put the crisis into remission.