Home ownership in Greater Sydney has fallen to its lowest level since the 1950s, marking a significant shift in the city's economic and social landscape. New data from KPMG reveals that while other parts of Australia, such as Queensland and Western Australia, have seen modest increases in owner-occupier rates, Sydney has struggled to keep pace. This decline is largely attributed to a combination of high housing prices and a persistent lack of supply, which have effectively priced many first-home buyers out of the market. As affordability continues to move against local households, young families are increasingly choosing to leave the city in search of more accessible housing options.
KPMG urban economist Terry Rawnsley noted that Sydney has effectively gone backwards by more than half a century in terms of home ownership. The trend has been particularly pronounced since 2011, a period that saw significant population growth through immigration while housing supply failed to keep up. This imbalance has created a competitive environment where would-be buyers struggle to secure a foothold. The resulting shift toward long-term renting is changing the nature of the city, as the traditional path to wealth through property ownership becomes increasingly difficult for the average resident.
Economists warn that this trend could have broader implications for the Sydney economy. As fewer residents own their homes, the traditional wealth effect—where rising property values encourage consumer spending—may weaken. Furthermore, the high cost of housing acts as a significant overhead for the city, potentially impacting small businesses and discretionary spending. With home loan demand falling, the market is facing a period of adjustment that could reshape the city's economic future over the coming decade.