According to reports, Sydney could have generated 45,000 additional dwellings without extra land if buildings constructed between 2017 and 2022 had been an average of 10 stories high instead of seven
Sydney, Australia, known for its stunning harbour and vibrant lifestyle, is facing a housing crisis that threatens the very fabric of its community. The increasing house prices are driving young families away, prompting warnings from the New South Wales state productivity commissioner, Peter Achterstraat. Between 2016 and 2021, Sydney experienced a significant loss of people in the 30-40 year age group, emphasisng the urgent need for strategic measures to tackle the housing shortage.
The Real Challenge: Housing Affordability
Australia ranks among the least affordable countries globally for housing, and Sydney’s situation is worsened by factors such as increasing population growth, limited construction, and a preference for smaller households. The result of all this is a stumble in the availability of dwellings, making it again difficult for young families to secure their homes. The problem is further intensified by the reluctance of residents to embrace high apartment blocks, even as the city anticipates over 1 million net arrivals in the next five years due to a rebound in immigration.
Peter Achterstraat, in a recent video accompanying a new Productivity Commission report, emphasised the critical role of increased housing density in addressing Sydney’s housing crisis. The report advocates for a shift in mentality from “Not in My Backyard” to “Appropriate Density in My Backyard.” Sydney, when compared to global counterparts like London, New York, or Paris has lower-density inner-city suburbs, offering ample room for vertical expansion.
According to reports, Sydney could have generated 45,000 additional dwellings without extra land if buildings constructed between 2017 and 2022 had been an average of 10 stories high instead of seven.
This could have resulted in a 5.5% reduction in prices and rent, leading to an annual saving of A$1,800 ($1,200) for renters. Drawing inspiration from successful models overseas, Achterstraat is confident that well-executed density can bring benefits to households, models overseas, communities, and the economy.
Achterstraat also calls for a fresh discussion on heritage restrictions, particularly in areas close to the central business district (CBD). The proliferation of Heritage Conservation Areas (HCAs) has limited new housing, affecting half of the residential land in prime Sydney suburbs. While acknowledging the need to avoid accidentally freezing young people out of the housing market.
Minister for Housing and Homelessness Rose Jackson acknowledges the severity of the housing crisis, citing a backlog of over 55,000 people on the social housing waitlist. She attributes this crisis to a decade of inaction by the former government, emphasizing the NSW Government’s commitment to delivering more homes and strengthening support services as a priority.
Sydney is currently at a crossroads, facing a housing crisis that demands immediate attention and strategic solutions. The call for increased housing density, along with a reexamination of age-old restrictions, presents a pathway toward a more sustainable and affordable future. As the government addresses the housing crisis, the alliance between residents, policymakers, and experts becomes crucial in shaping Sydney’s destiny-one that ensures a vibrant, comprehensive, and thriving city for the next generations.