Sydney unaffordable despite home building boom

Adam Smith 22 December 2016 NEWS

SydneyNews3A record number of newly-built homes in Sydney have done little to alleviate housing affordability problems.

A Sydney Morning Herald report has found more than 31,000 new homes were built in Sydney over the 12 months to October. The figure is the highest annual number of new homes in more than 40 years, the SMH reported.

NSW Planning Minister Rob Stokes touted the figures as proof that the NSW government was “helping deliver a record number of new homes across Sydney”. He suggested that the state government’s policies were helping to address the 100,000 home undersupply faced by the city, the SMH said.

“By building a simpler, more efficient planning system, we’re working to improve housing supply and choice to help people get into the market,” Stokes said.

By City Futures Research Centre director Bill Randolph told the SMH the surge in home building was unlikely to serve as a panacea to rising house prices.

“Supply is just one part of it. It certainly isn’t going to relieve the affordability crisis we seem to be perpetually living with in Sydney,” he said.

University of Sydney head of urban and regional planning Peter Phibbs agreed, arguing that the federal government had “passed the buck to the states” in its refusal to consider changes to negative gearing and capital gains tax concessions.

Latest home loans headlines

Image: Shutterstock

Get more from finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
Go to site