The differential geography of housing affordability in Sydney: a disaggregated approach

Abstract

ABSTRACTDespite extensive studies being devoted to housing affordability in Australia, few have investigated housing affordability at a disaggregated level. This is in spite of the fact that there are existing socio-economic and demographic disparities across different regions of a city. This study aims to fill this gap by examining housing affordability in Sydney, a city that is characterised by diverse demographic and socio-economic mix, from a sub-city perspective. Two dimensions of affordability are assessed from 1991 to 2016: entry-level and ongoing housing affordability. The study finds that entry-level housing remains extremely unaffordable in all regions of Greater Sydney, although the level of unaffordability varies across regions. Specifically, the deterioration in housing affordability is more obvious in low-income regions such as Western Sydney. In addition, the ongoing housing affordability of those who have entered the market improves considerably within 5–10 years, although there are significant variations between different regions. Importantly, residents in low-income regions such as Western Sydney take a longer period to improve their ongoing affordability. The findings of differential geography of housing affordability have some profound policy implications. Policymakers should consider the disparities across different regions by formulating a more targeted and regionally balanced housing policy.