Sydney is the ultimate city of housing “haves” and “have-nots,” of housing millionaires and paupers.
Examine the following chart of median dwelling values across Australian capital cities, states, and territories.
As of March 31, Sydney’s median dwelling price was an astonishing $1,437,000, driven by detached houses worth a stunning $1,437,000.
Sydney’s home prices are significantly higher than the other Australian capital cities. As of 31 March, the combined capital median value was $865,000, with detached houses priced at $982,000.
According to the 2021 Census, only 61.1% of homes in Sydney were owned outright or with a mortgage, a 1.1 percentage point decrease from 2016.
Sydney’s homeownership rate was also significantly below the national average of 66%.
The cost of renting in Sydney has also soared to record levels, negatively impacting nearly 40% of the city’s residents:
According to Domain, the median Sydney house rent increased from $550 in Q2 2021 to $775 in Q1 2025, a 41% increase.
Sydney unit rents soared from $470 in Q2 2021 to $725 in Q1 2025, a 54% increase.
The soaring house prices and rents have created a massive wealth divide between owners and renters in Sydney.
Sydney’s housing picture is unlikely to improve, given the city is projected to expand to more than 8 million people by the 2060s, driven entirely by strong net overseas migration.
As a result, Sydney is projected to transform into an Asian-style high-rise city, with only one quarter of dwellings being a detached house with a backyard.
Within a few decades, only the elderly and wealthy will own a detached house with a backyard in Sydney.
The majority of younger Sydneysiders will rent a high-rise apartment.
