A new report says Sydney's housing crisis is costing the economy over $10 billion a year. 

Internationally benchmarked, the report by the Committee for Sydney says the city exhibits alarming signs of chronic unaffordability. 

The median property price in Sydney has surged to over 13.3 times the median income, up from 8.3 a decade ago. A staggering 35.3 per cent of Sydney renter households grapple with rental stress, where housing costs exceed a third of their monthly income. Sydney ranks as the second least affordable major housing market globally, trailing only Hong Kong.

“The housing crisis is deeply impacting every single one of us, but we've got to be clear that what we're experiencing isn't just a short-term housing crisis, it's now chronic and it's costing Sydney's talent, innovation, and productivity more than $10 billion per year,” said Eamon Waterford, CEO of the Committee for Sydney.

He says the impacts on Sydney's economy include serious talent drain, with high housing costs driving thousands of workers away from Sydney to cities like Melbourne and Brisbane, resulting in a $10-billion annual economic loss.

 The Committee for Sydney proposes a three-pronged approach:

  1. Inclusionary zoning: Implement an inclusionary zoning target in all rezonings, mandating affordable housing in new developments.

  2. Invest in affordable housing: Allocate more resources to social and affordable housing initiatives.

  3. Boost housing supply: Increase housing supply with a focus on accessibility, transportation, open spaces, schools, childcare facilities, and essential services.

Sydney currently ranks as the sixth least affordable city globally, taking into account home ownership and rental data. It shares similarities in unaffordability with London and Vancouver.

To combat housing shortages, cities like Vancouver and Amsterdam have invested heavily in affordable housing initiatives, while Miami targets key workers like nurses, firefighters, and teachers.

Sydney's Committee for Sydney says investments must be made to alleviate the chronic housing crisis.