A new study by UNSW and UTS highlights Sydney's severe housing affordability crisis, showing that part-time workers, who now make up 23.6% of the workforce, are entirely priced out of the property market. Even full-time workers face significant financial challenges in owning a home. The Australian government has allocated USD 3 billion for social housing and aims to build 1.2 million homes in five years, yet current approval rates fall short. The study emphasizes the need for comprehensive policies to address rising housing costs and the impact of employment types on affordability.
The dream of owning a home in Sydney might be slipping further away for many residents. A new study by the University of New South Wales (UNSW) and University of Technology Sydney (UTS) paints a concerning picture of housing affordability in the city.
The research highlights a significant challenge: the rising proportion of part-time workers who are entirely priced out of the Sydney property market. Even if they dedicate their entire salary towards housing costs, they cannot afford to buy a home in almost any area. With the Australian Bureau of Statistics data showing the part-time workforce growing to over 23.6% in May 2021 (up from 20.6% a year earlier), this has a major impact on affordability for a large segment of the population.
The study goes beyond the part-time worker issue. The researchers reveal a surprising finding: full-time workers are also facing significant financial difficulties in their pursuit of home ownership. Professor Chyi Lin Lee, a lead author of the study, emphasizes, "We expected part-time employment to be a major concern, but full-time earners are also significantly affected." This finding highlights the widespread nature of Sydney's housing affordability crisis.
The research team stresses the need for comprehensive policy solutions to address this complex issue. Professor Lee points out the crucial role of employment type in affordability calculations, an aspect often neglected in past analyses. This suggests a need for policymakers to consider the impact of increasing part-time work on housing affordability.
The Australian government has acknowledged the problem. Last year, they announced USD 3 billion in funding for social and affordable housing initiatives, along with an ambitious goal of building 1.2 million homes in five years. However, the current rate of dwelling approvals falls short of what's needed to achieve this target.
The UNSW-UTS study forecasts continued struggles with affordability until at least the end of 2031. This highlights the urgent need for a multi-pronged approach, including increased affordable housing options, a review of policies to ensure full-time workers have a fair shot at entering the market, and potentially, addressing the rise of precarious employment structures.
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