The NSW treasurer has raised the alarm that Sydney housing may only be accessible to the very wealthy and homeless like San Francisco – if changes are not made soon.
Daniel Mookhey said on Monday that the country’s most populous city has a five- to 10-year window to rebuild the housing sector and prevent it from being dominated by intergenerational wealth.
Without intervention, the city could fall into a state similar to California cities, where skilled workers must choose between food and high rents and businessmen in suits line up at soup kitchens, Mookhey said.
Homelessness camps are popping up around Sydney, housing up to eight people each night under the canopies of the empty Metro Minerva Theater building in Potts Point.
Sydney (pictured) has had five to 10 years to six of the housing crisis before the market is dominated by those with generational wealth
The price of a house in Sydney is currently rising to a point where it excludes those who gain education and independent wealth, Mr Mookhey said.
In the past, education was the equalizer for a market built on egalitarianism, allowing those who put in the effort to afford a home and become part of the middle class.
The Treasurer said the issue will be particularly troubling to Generation Z Aussies, who are on par with the most educated in history but are also having the hardest time owning a home.
“Having parents and grandparents with a real estate portfolio is starting to become more important than getting a degree,” Mookhey said.
‘The prospect of owning a home is now further away for more young people than it has been for generations.’
The treasurer compared the trend to that of San Francisco, where the middle class “has it” their lives turned upside down by housing insecurity and homelessness.”
NSW Treasurer Daniel Mookhey (pictured) warned Sydney could end up in a state similar to San Francisco, California, where even the wealthy have to choose between food and exorbitant rents
San Francisco has become known for the many homeless encampments that litter the streets (photo)
While complimenting the city for seeking solutions, he said “their points of intervention are very late.”
“We still have a moment where we can make better choices,” he said.
The state government’s plan to revive the housing market includes reforming zoning laws to allow complexes of up to six storeys to be built within 400 meters of the city’s 30 train stations.
However, the rezoning plan was not welcomed by locals on Sydney’s north shore, who criticized the government for not caring about their area’s heritage or home values.
Mr Mookhey hit back at opponents of the plan A balance can be found between protecting the character of a neighborhood and allowing people to break into the housing market.