A new report from KPMG has revealed that home ownership in Greater Sydney has fallen to its lowest level in seven decades. The analysis, which draws on census data and housing records, estimates the owner-occupier rate in the city dropped to 59.9 per cent in 2025. This decline marks a significant shift for the city, which has not seen such low levels of home ownership since the late 1950s.
The primary drivers behind this trend are rising property prices and a constrained supply of housing. With the median dwelling value in Sydney reaching $1.2 million—more than 10 times the median household income—many prospective buyers are finding themselves priced out of the market. As a result, a growing number of households are choosing to rent rather than purchase their own homes.
While the national owner-occupier rate also saw a slight decline, the drop is most pronounced in Sydney and regional New South Wales. In contrast, other states like Queensland and Western Australia have experienced an increase in home ownership rates over the same period. Experts suggest that the pandemic-era shift toward remote work and relatively lower prices in those states helped facilitate this divergence.
Younger households and first-time buyers are the groups most affected by these changes. As the gap between income and property values widens, the traditional path to home ownership is becoming increasingly difficult for those entering the market. If this trend persists, analysts warn it could lead to long-term changes in the city's socioeconomic makeup.
Government officials are currently reviewing policies aimed at boosting housing supply, though the report indicates that current measures have yet to reverse the downward trend. As the debate over housing affordability continues, the public remains focused on whether future policy interventions can make home ownership more accessible for the next generation.