Sydney Home Ownership at 70-Year Low

Housing Policy

Thursday, 16 July 2026, 8:00 pm

Sydney's home ownership rate has dropped to its lowest level in about 70 years.

In short:

KPMG data shows that the rate of people owning homes in Sydney has decreased sharply to levels not seen since the 1950s.

In other parts of Australia, home ownership rates are increasing, including in Queensland and Western Australia.

What's next:

The next census will take place in August, with results expected to be published a year later.

Owning a home in Sydney has become very difficult for many people, with home ownership rates at their lowest level in about 70 years.

New research by KPMG shows that Sydney's home ownership rate dropped to 59.9% in 2025, down from 61.1% in 2021. This is a big decrease. The city's home ownership rate has gone backwards by more than half a century.

KPMG urban economist Terry Rawnsley said, 'Sydney has gone backwards on home ownership by more than half a century.'

The latest KPMG analysis combines 2021 census and ABS housing survey statistics with rental bond data to estimate current owner-occupier rates.

The analysis includes people living in a home they own and occupy, and excludes property owners who rent themselves, known as 'rentvestors'.

Estimated owner-occupier rate across Australia over the years.

A Four Corners investigation found many 'affordable' rental homes were unaffordable for those who needed them most, particularly single-income households.

Nationally, the proportion of owner-occupier households dropped from 66.3% in 2021 to an estimated 65.9% in 2025. This decrease was mainly driven by Sydney and Regional New South Wales.

While the next census will take place in August, it will likely be 12 months before the results are published.

Home ownership is roughly unchanged elsewhere.

Stripping out New South Wales from the national number, the owner-occupier rate remained roughly unchanged between 2021 and 2025.

Queensland saw a notable improvement in home ownership rates, with KPMG data revealing the proportion of residents in the state who lived in a home they owned lifted from 63.9% in 2021 to 64.9% in 2025.

In Western Australia, the proportion of owner-occupiers grew from 69.2% in 2021 to 69.9% in 2025.

Victoria held steady over the period with 68.7% of households owning the home they lived in.

Annual average growth in owner-occupier home ownership.

KPMG's data show ultra-low interest rates and the rise of remote working have allowed people outside New South Wales to access a wider range of housing options.

'Western Australia and Queensland offered a rare combination during the pandemic: relatively affordable homes, ultra-low borrowing costs, and the flexibility for people to work from almost anywhere,' Terry Rawnsley said.

'As a result, people may have sold their homes in those states or taken advantage of cheaper housing to enter the property market when they otherwise could not have afforded to do so in somewhere like Sydney.'

'The data shows affordability is redrawing the housing map,' he said.

House prices down nationally in June.

It comes as national house prices fell by 0.3% in June, according to the latest data from REA Group.

National home prices fell by 0.3% in June, according to the latest data from REA Group, but are still higher than a year ago.

Sydney and Perth saw the largest declines over the month, followed closely by Melbourne and Canberra. Darwin was the only city to see prices up over the month.

Despite the fall, which REA Group says can be put down to cumulative interest rate hikes and changes to capital gains tax, prices in every capital city except Melbourne remain higher compared to a year ago, with national prices up 5.8% over the year.

Tough for Sydneysiders, but positive signs elsewhere.

Despite Sydney's growing army of renters, KPMG says there remains 'positive signs for home ownership' across other parts of the country.

The number of dwellings under construction nationally, for example, reached a record 243,900 in the March quarter, up from 220,300 a year earlier, according to ABS data.

With housing prices coming off the boil, maybe our banks will start lending to more productive areas of the economy, like business.

Despite rising interest rates, ABS data shows the number of loans issued to first-home buyers increased from 117,200 in the year to March 2025 to 120,500 in the year to March 2026.

'The dream of owning a home is far from dead,' Mr Rawnsley said.

'Australians are adapting, relocating, and working hard to get into the market, and the combination of more housing supply and targeted support is creating a pathway to home ownership for more households,' he said.

Cotality's Gerard Burg said Sydney remains unaffordable for many Australians.

However, Cotality's head of research, Gerard Burg, argued that affordability remained an enormous challenge for gen-Zers in Australia's largest city.

'Sydney really does stand out as the least affordable,' he said.

Mr Burg said Sydney's median dwelling value at $1.2 million was more than 10 times the median household income of those in Greater Sydney, which, according to the ABS, is $108,000.

Australian house prices have recorded their biggest monthly fall since 2022. For young buyers hoping it's a turning point, economists have some bad news.

'It speaks to the challenge [for younger Sydneysiders],' he said.

Mr Burg also pointed to planning hurdles expected for Greater Sydney over the coming decade.

There are significant challenges across various professions considering where they can live, where they can work.

A nurse, for example, considering the income they earn has enormous challenges [to find a home in some parts of Sydney].

Thursday, 16 July 2026, 8:00 pm

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