The data from the NSW Productivity Commission found that it’s not just grey nomads leaving Sydney, with 70,000 people aged 30 to 40 leaving the city between 2016 and 2021, while only 35,000 moved to Sydney.
Productivity Commissioner Peter Achterstraat warned that Sydney could become the “city with no grandchildren” if nothing is done to tackle the cost of living crisis.
“Sydney is losing its 30- to 40-year-olds,” Mr Achterstraat said.
“Many young families are leaving Sydney because they can’t afford to buy a home, or they can only afford one in the outer suburbs with a long commute.”
The Commission also found that 45,000 extra dwellings could have reasonably been built over a five-year period from 2017 to 2022 with no extra land required.
“This could have seen prices and rents 5.5 per cent lower – $35 a week for the median apartment, or a saving of $1800 a year for renters.”
The NSW government has revealed a three-pronged strategy to tackle this growing problem.
The first prong is implementing a transport-oriented development (TOD) program, identifying eight transport hubs, known as Tier One locations, where rezoning could help deliver 47,800 new homes over the next 15 years.
The government will look to change planning permissions to allow high-density developments in locations within 1.2km of metro or train stations.
Additionally, 31 areas across NSW will be “snap rezoned” to increase densities within 400 metres of suburban train stops and town centres, with the idea of creating new homes in areas that have existing infrastructure.
The second prong will see the state government push local governments to allow different styles of homes in suburbs, including flats, terraces and duplexes.
In NSW, councils have their own rules about what dwellings are permissible in their areas. A Department of Planning and Public Spaces briefing note said: “If a council doesn’t change its rules, then the State Government’s rules will … apply, to confront the housing crisis.”
The third and final prong will see $520 million in commitments to community infrastructure projects in Tier One locations to bolster the increased density in these areas.
Minister for Planning and Public Spaces Paul Scully said: “The reality of rising housing prices and lack of available housing is making it harder for people to stay in the same suburbs as their families or live close to their jobs.
“The Opposition has a choice – they can get behind important reform that will help house the next generation or they can continue to oppose reform and turn their back on young kids trying to bed down roots in NSW.
“That’s why the Labor government has introduced the boldest housing reforms in 12 years, we’ve created new housing policies that are designed to get supply moving and overcome this problem.
“If there’s no supply, there’s no homes for the next generation. The NSW Government is not going to turn their back on housing, it’s a basic need.
