The differential geography of housing affordability in Sydney : a disaggregated approach

Despite extensive studies being devoted to housing affordability in Australia, few have investigated housing affordability at a disaggregated level. This is in spite of the fact that there are existing socio-economic and demographic disparities across different regions of a city. This study aims to fill this gap by examining housing affordability in Sydney, a city that is characterised by diverse demographic and socio-economic mix, from a sub-city perspective. Two dimensions of affordability are assessed from 1991 to 2016: entry-level and ongoing housing affordability. The study finds that entry-level housing remains extremely unaffordable in all regions of Greater Sydney, although the level of unaffordability varies across regions. Specifically, the deterioration in housing affordability is more obvious in low-income regions such as Western Sydney. In addition, the ongoing housing affordability of those who have entered the market improves considerably within 5-10 years, although there are significant variations between different regions. Importantly, residents in low-income regions such as Western Sydney take a longer period to improve their ongoing affordability. The findings of differential geography of housing affordability have some profound policy implications. Policymakers should consider the disparities across different regions by formulating a more targeted and regionally balanced housing policy.