Is Northern Beaches housing supply moving towards crisis point?

Some might say ‘housing affordability’ is at a crisis point in Sydney, and that certainly seems to be the case here on the beaches.

As desirable as it is to live here, it’s simply out of reach for many. As a guide, housing costs shouldn’t exceed 30% of a person’s income. Doing the math, this just doesn’t add up for many workers.

Most of the housing supply on the beaches is free-standing homes and units.

Using the 30% rule, you would need an average weekly income of $3,333 to rent a house, and $2,083 to rent a unit. That’s a hefty outlay, and clearly many people are spending more than 30% of their income on housing, meaning they have little left each week to pay for all other essentials.

Buying is even more difficult. The average price for a unit is $1,084 million and average price for a house is $2,192 million*. It’s easy to see why many people can’t afford to save for deposits and then service a mortgage.

Herein lies the reason for more diverse housing options, what we call the ‘missing middle’ – dual occupancies, granny flats, boarding houses, and shared accommodation. There is also a need for more social housing in cases where people just cannot afford to access the private housing market.

Meeting the housing needs of residents and would-be residents, in the face of population growth trends, household type changes and lifestyle issues, is a complex challenge for which there is no easy fix. 

We have developed a Draft Local Housing Strategy outlining how and where future housing will be delivered to meet our community's needs over the next 20 years.

Find out more and have your say before 21 February.

*Department of Communities and Justice, December 2020