In a world where home ownership is often seen as a cornerstone of financial stability, the story of Sydney's housing market is a fascinating, yet concerning, anomaly. The city's home ownership rates have plummeted to their lowest in nearly seven decades, painting a stark picture of unaffordability and a growing army of renters.
The Sydney Story
Sydney's home ownership rate, as of 2025, stands at a mere 59.9%, a sharp decline from the national census levels of 2021. This drop, as KPMG's urban economist Terry Rawnsley points out, is a regression of more than half a century. It's a stark reminder of how far housing affordability has moved against households, particularly younger Australians, who aspire to own where they live.
The analysis, which combines census data with rental bond information, reveals a city where the dream of home ownership is increasingly elusive. The data includes owner-occupiers and excludes rentvestors, providing a clear picture of the city's housing landscape.
A National Perspective
On a national scale, the story is more nuanced. While Sydney and Regional New South Wales have seen a decline in home ownership, other states are telling a different tale. Queensland, for instance, has seen a notable improvement, with owner-occupier rates rising from 63.9% in 2021 to 64.9% in 2025. Western Australia and Victoria have also maintained or slightly increased their rates.
This disparity can be attributed to a unique combination of factors during the pandemic: affordable homes, ultra-low borrowing costs, and the flexibility of remote work. As Rawnsley notes, this has allowed people to access housing options they might not have otherwise been able to afford, particularly in states like Sydney.
The Bigger Picture
Despite Sydney's struggles, there are positive signs for home ownership across the country. Nationally, the number of dwellings under construction is at a record high, and first-home buyer loans are on the rise. This suggests that Australians are adapting, relocating, and working hard to enter the market. The combination of increased housing supply and targeted support is creating pathways to home ownership.
However, as Cotality's Gerard Burg highlights, affordability remains a significant challenge, particularly for Gen-Zers in Sydney. With a median dwelling value of $1.2 million, more than 10 times the median household income, Sydney stands out as the least affordable city. This disparity speaks to the challenges faced by younger generations and the burden felt by those across various professions.
Conclusion
The story of Sydney's housing market is a complex one, with a mix of challenges and opportunities. While the city grapples with unaffordability and a growing renter population, other parts of the country are seeing positive signs for home ownership. It's a reminder that while housing markets can be local, the solutions often require a national perspective and a commitment to creating pathways to home ownership for all.
