A decade past, Sydney’s median house price was approximately $1 million, indicating a 70% increase, and two decades ago, it stood roughly at $550,000, showing a 220% rise. Currently, Sydney also leads the nation in median asking rents, with houses at $780 and units at $740 as of Q2 2025.
A recent analysis by Mark Litwin, Head of Investment Sales at Knight Frank NSW, underscores the inherent housing supply issues. He points out that population growth, primarily fuelled by overseas migration, significantly exceeds housing completions, creating a persistent shortage that supports house price inflation.
This diagnosis echoes projections from the National Housing Supply and Affordability Council (NSAC), which foresees New South Wales missing its housing target by 130,000 units over the next five years, largely due to net overseas migration.
In 2024, NSW's population surged by 108,000, with net overseas migration accounting for the vast majority—106,700. Over the preceding decade, 88% of the state’s population growth was attributed to overseas migration, compounded by migrant birth rates.
Experts argue the root of New South Wales's housing shortfall is excessive net overseas migration. Thus, it is recommended that the state government advocate for federal immigration policy adjustments to sustainable levels that can be readily integrated.
Critics claim that maintaining high migration levels will not alleviate the housing crisis, suggesting that other policy measures alone may be inadequate. Without addressing population growth, the housing market may continue to pressurise young Sydneysiders, prompting them to seek more affordable living elsewhere.
