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Early childhood educators are locked out of Sydney housing in terms of affordability
Freya Lucas
Nov 27, 2024
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Early childhood educators, teachers, nurses and police have been priced out of Greater Sydney’s housing market, new data has shown, outlining that for many, the dream of home ownership, or even an affordable rental, is now beyond reach.
The new research compares the median income and housing costs in 2024 with the last major housing crisis (in 2007), finding that many workers now face costs ‘significantly more’ than 30 per cent of household income.Breakdown of Worker Types and Affordability
The report highlights six key worker households in NSW and how their earnings impact their ability to afford housing across 12 locations.
Early childhood educator (termed ‘Childcare Worker’ in the report) – Income: $58,869
- Buying: Both a house and a unit are completely beyond reach for a childcare worker on this income.
- Renting: Renting either a house or a unit is unaffordable in every surveyed location.
Primary School Teacher and Administrative Assistant – Combined income: $163,616
- Buying: No median-priced house in areas surveyed is affordable for this couple, despite a combined income significantly higher than the NSW average. Units are affordable within the 30 per cent income threshold in only two locations—Penrith and Liverpool.
- Renting: Renting a house is affordable in most areas except for Randwick and Manly. Renting a unit is generally affordable.
Single Income Police Officer – Income: $92,281
- Buying: Completely locked out of buying a median-priced house or unit in any surveyed location apart from Liverpool.
- Renting: Renting a house is unaffordable across all regions, but a two-bedroom unit is affordable in 6 out of 12 locations.
Ambulance Officer and Nurse – Combined income: $158,512
- Buying: Unable to afford a median-priced house in any of the LGAs surveyed. Buying a two-bedroom unit is possible in some areas but not others.
- Renting: Renting a house is affordable in most regions except Randwick and Manly, with renting a unit being their only truly affordable option.
Public Servant – Income: $99,380
- Buying: Neither a house nor a unit is affordable at median prices across all surveyed locations. Half of the locations surveyed need more than 100 per cent of this household’s annual income just to cover mortgage payments.
- Renting: Renting a house is largely unaffordable, with some regions marginally affordable. A two-bedroom unit is unaffordable in half the locations surveyed.
Electrician and Part-time Retail Shop Assistant – Combined income: $146,263
- Buying: Buying a house is beyond reach but not as dire as in 2007. Most units remain unaffordable, though the substantial increase in base income for electricians means there has been some improvement since 2007.
- Renting: Renting a house is affordable in most areas, and renting a unit is affordable in all locations surveyed.
“Greater Sydney’s housing market is fast becoming a no-go zone for essential workers and their families,” Property Council of Australia NSW Executive Director Katie Stevenson said.
“Recent reforms can help us in the long-term, but we are in a crisis now, and that requires creative solutions to build many more homes, faster.”
Drawing on data from Pricefinder and CoreLogic, the research examines the affordability of new and established homes and apartments across 12 local government areas (LGAs). The study measured average household incomes for teachers, nurses, police, public servants, and other essential workers, against median housing costs.
“The research paints a dramatic and depressing picture – no essential worker living on their own can afford to buy or rent a median-priced home or unit in most areas,” Ms Stevenson said.
“For dual-income families with an average gross income of $160,000, purchasing an established home is considered beyond reach, and house and land packages are increasingly out of reach.”
Using Parramatta as an example, the average household income for essential workers has increased by 87 per cent since 2007, while median unit prices have increased by 93 per cent, and housing prices by 248 per cent over the same period.
Weekly rents in Parramatta have increased 121 per cent, and 117 per cent for a house and unit respectively.
The report includes a set of recommendations from the Property Council that it believes could unlock more affordable housing, such as streamlined planning processes, innovative delivery models, and a holistic review of taxes, charges and compliance costs.
“We also need the government to accelerate the release of surplus or underutilised publicly owned land for residential development, explore more flexible and innovative financing solutions for affordable housing and commit to a moratorium on new development charges,” Ms Stevenson said.
Access the report here.
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