Western Sydney at epicentre of the state's housing crisis, new report reveals

9th November 2023

A new report has found Western Sydney is at the epicentre of the state’s housing crisis, with the squeeze only likely to worsen as the region prepares to accommodate nearly two-thirds of Greater Sydney’s overall population growth over the next two decades.

"Both the quantitative data and the stories from those on the ground point to one thing – a housing crisis in Western Sydney," said report author Mr Tom Nance.

"A confluence of factors – low property completion rates, soaring housing costs and a lack of meaningful progress on social and affordable housing development – has led to the crisis."

Released by the Centre for Western Sydney, the Home Truths: The Real Housing Story in Western Sydney report shines a light on years of housing failures. 

It reveals that social and affordable housing in the region only meets 44 per cent of demand at present, with an estimated shortfall of nearly 76,000 dwellings. Without immediate action, this gap will blowout to a deficit of more than 160,000 homes by 2041. 

Report author Mr Tom Nance

The report also found the proportion of households using social housing was higher in Western Sydney, at 5.3 per cent compared to 3.0 per cent for the rest of Sydney.

"Once an accessible safety net for households, social housing has been replaced with a long waitlist with the expected waiting time for social housing in many parts of the region exceeding ten years. And this is simply unacceptable,’" said Mr Nance. 

The report found growing housing stress experienced by the region’s key workers has the potential to have a significant impact on Western Sydney’s economy. 

Larger family sizes in Western Sydney, as well as inter-family and inter-generational living, are creating demand for social and affordable housing dwellings which have four or more bedrooms. 

Mr Nance said: "Urgent action is required to address this critical issue for our city. It will take a collective effort from all three levels of government, as well as industry and community, to overcome this unprecedented challenge."

"The construction of social and affordable housing dwellings that reflect an appropriate mix of dwelling types is critical, to ensuring that people, including key workers and those on low incomes, can access housing that suits them and enables their participation in everyday life."

Outlining five key priority areas, the report calls for all levels of government and policy platforms of advocacy and lobby groups, to support the delivery of appropriate housing for current and future residents in Western Sydney. 

This includes critically incorporating affordable housing development for key workers as part of health, education and innovation precinct designs, to safeguard the retention of the region’s essential workforce. 

Download the Home Truths: The Real Housing Story in Western Sydney report.