Sydney is the sixth most expensive city in the world for housing, beating out New York, London, Paris and Los Angeles, according to a new report. 

Think tank the Committee of Sydney's report released this week claims the city's housing crisis has reached seriously detrimental levels, saying it costs the city $10 billion a year in lost talent, productivity and innovation.

Staggeringly an average home in Sydney costs more than 13 times the median salary.

More than just a short-term crisis, housing is a chronic issue for Sydney and represents a serious threat to the city long term if nothing is done, says the committee's chief executive, Eamon Waterford.

Mr Waterford said the costs are being felt most by young Sydneysiders at the start of their careers, 'putting a handbrake' on opportunities that would have been open to them if housing was more accessible and affordable.




Sydneysiders are battling one of the toughest housing markets in the world a new report reveals (pictured, a queue at a recent rental inspection)





Sydney is the sixth most expensive city in the world to rent or buy a house

'If we don't take urgent and sustained action, chronic housing unaffordability will continue to erode Sydney's competitiveness on the global stage and our city's long-term economic success,' he said.

The think tank said younger people were leaving the city en masse for cheaper locations or were less productive because they were unable to fund suitable accommodation near their work.

The report identified $1.5 billion in lost talent due to out-migration and diminished appeal, on top of $6.8 billion in lost productivity, and $2.9 billion in reduced innovation, including less patents and start-ups.

Rental availability and affordability are also at crisis levels, with 35.3 per cent of Sydney renter households experiencing rental stress, meaning they pay more than 30 per cent of monthly income on housing costs.

The report recommended three key actions to help fix the issue, beginning with introducing an inclusionary zoning target, to provide affordable housing in new developments on all rezonings.











Huge queues of Sydneysiders are seen lining up to inspect an apartment in Randwick recently

It also recommended the government invest in building much more social and affordable housing, and significantly increase the supply of high-quality housing, with good access to transport, open spaces, schools, child care, shops and other services.

'We can't solve this overnight, but we can commit to the bold, brave and long-term program required to send Sydney's chronic housing crisis into remission,' Mr Waterford said.




Sydney is in some pretty hefty company with Hong Kong (pictured) the most expensive





San Francisco is the second most expensive city to rent or buy a house or kraken apartment in the world





Vancouver in Canada is also more expensive than Sydney at number four on the list

The Greens are seizing on analysis showing most investors prefer existing dwellings over new builds to argue for housing reform.

More than 80 per cent of investor finance went to buying existing dwellings, while the rest went towards the construction and purchase of new homes between 2019 and 2023, Australian Bureau of Statistics data reviewed by the Parliamentary Library shows.

The minor party is steadfastly against the government's signature Housing Australia Future Fund, in a bid to wring more money for social housing out of the budget and push for rental reform.

Greens housing spokesman Max Chandler-Mather also maintains his call for a rent freeze as a sticking point in negotiations with the government, something that state and territory governments have ruled out.

The government and economists have slammed the proposed rent freeze, saying it would impact supply by scaring investors out of the market.

Mr Chandler-Mather said the fact such a small portion of investment went to helping boost supply means the government's argument about supply doesn't make sense.

'The bottom line is if we want to tackle this housing crisis then we need to freeze and cap rent increases,' he said.

The Greens also want to phase out negative gearing and cut capital gains tax concessions.