REA Data Confirms Housing Crisis
The latest REA Group Rental Affordability Report confirms NSW is experiencing the worst rental affordability crisis on record, directly contributing to the state’s entrenched homelessness problem.
“This report validates what 67,900 people seeking homelessness support last year already know – housing in NSW has become completely unaffordable for many,” said Homelessness NSW CEO Dominique Rowe.
The REA Group data shows NSW remains Australia’s least affordable state for renters, with median Sydney rents reaching an unprecedented $780 for houses and $700 for units – substantially higher than anywhere else in the country.
“Even households earning $116,000 can only afford 36% of available rentals. It’s little wonder we’re seeing more people become homeless before they reach out for help,” Rowe said. “The system is failing at the most fundamental level.”
The rental affordability crisis directly correlates with the reasons people sought homelessness services in 2023-24, with housing crises (41%), financial difficulties (39%), and family violence (36%) being the primary drivers.
Most concerning is the inability of the system to provide housing pathways. With 76% of people seeking long-term housing unable to access it, and 49% unable to secure emergency accommodation, the situation has reached breaking point.
“The REA Group report shows that even high-income earners are struggling in this market. For vulnerable populations, particularly our Aboriginal communities who make up 33% of homelessness service clients, the situation is dire.”
While the report notes some early signs of easing pressure in rental availability, Homelessness NSW warns that without significant government intervention, the crisis will continue.
“We need a 30% increase in homelessness service funding and $2 billion annually for social housing. This is essential. The REA Group’s data makes it abundantly clear that this is a systemic crisis requiring immediate action.”