Sydney is fast becoming the world’s most unaffordable city, taking out second place in a list of the world’s most expensive cities.
According to the Demographia International annual Housing Affordability Survey, of 272 markets in six countries, Sydney is the second least affordable place to buy a home.
Vancouver was ranked as having the most expensive housing market in the world.
Urban Taskforce chief executive Aaron Gadiel said the results were not surprising given Sydney’s lack of housing development which has resulted in extreme demand and inflated house prices.
“Sydney’s lack of affordability is a symptom of fundamental problems in the supply of new housing.
“Sydney’s skyrocketing home prices and high rents are the inevitable result of low rates of housing construction.”
“Rents in outer suburban Sydney have gone up by more than 20 per cent in the last two years.
“In the middle ring suburbs, rents have jumped near to 30 per cent,” he said.
Mr Gadiel said that NSW needed to re-open its doors to private investment in urban renewal and expansion.
“We need to see local councils and government making decisions to approve new development,” he said.
“We’ll never get on top of the state’s housing shortage if it doesn’t become easier for developers to build new suburbs.”