Due to rising cost of living spurred on by the over-inflated housing market, Sydneysiders
are giving up on the Sydney dream. Sydney has become too expensive for the average Australian.
According to the Economist, Sydney is the tenth most expensive city to live in in the
world — by far the most expensive Australian city — and is ranked as more expensive than
every single city in America. It has an index value of 102. For comparison, New York City
has an index value of 100. Singapore is the most expensive city to live in with an index
value of 116.
So what are Sydneysiders saying? Well, a lady by the name of Priscilla Meyer and her young
family are giving up on the Sydney dream. She has been living with her husband and toddler
at her mother’s house for the past three years in the suburb of Parklea.
Just for your interest, I was born in Sydney and lived in the suburb of Baulkham Hills,
but even 30 years ago, my parents left because Sydney was becoming far too busy for them.
Parklea is about 1½ hours from the CBD, depending on how you travel. Due to high property prices
and rising cost of living, Priscilla and her family are looking to buy in Melbourne, Victoria,
where they can get a house an hour's drive from the CBD for under $500,000. Although
moving cities is not ideal, according to the Economist’s Most Liveable Cities 2018, Melbourne
comes in at number two. Sydney is fifth on the list, while South Australia’s Adelaide
comes in at number ten. Not bad Australia.
Ms Meyer stated:
“Sydney's just unaffordable for us. We can't even think about it anymore, we've stopped
dreaming about it.”
Another Sydney resident, David Boyd, was once a high-flying banker. But everything went
south when he lost his job during the 2008 global financial crisis. He struggles to find
enough money to provide the basics for his 10-year-old daughter, Kali.
Mr Boyd stated:
“I was at the top of the tree. I was wining and dining and had the beautiful house on
the beach, half a million dollars in the bank and now I'm at the opposite end of the scale.
I've lost everything and now I'm struggling to make ends meet, I don't know where my next
meal will come from.”
He’s currently receiving Centrelink payments, but they’re simply not enough. Almost three
quarters of his payments are swallowed up paying the rent for his small two-bedroom
flat that he shares with his daughter in Penshurst in Sydney’s south.
His daughter has a skin condition and requires special serums and oils, but these are not
covered under the Australian Government’s Pharmaceutical Benefits Scheme as they are
non-prescription. With regards to his daughter, Mr Boyd said:
“I'm concerned to be able to feed my daughter … and I live for her, if I didn't have her
I wouldn't have kept going.”
In March, there will be state elections in New South Wales and parties are making lots
of campaign promises to improve housing affordability. But according to the head of the NSW Council
of Social Service, Joanna Quilty, these measures will simply not help the people who need help
the most. She said:
“I think there is a focus on middle-income families and that is fair enough, but I think
it's those who are in low-income households who are really struggling, who aren't as vocal,
who are really being overlooked.”
The New South Wales economy is actually booming at the moment, but public housing is severely
lacking. There were 60,000 people waiting for public housing at the end of last financial
year, and Ms Quilty has been trying to urge the State Government to do something about
it.
“We know that the majority of people that are living below the poverty line are renting
and really struggle to find affordable accommodation. There needs to be a significant boost in investment
towards social and affordable housing. We certainly have a really strong economy and
we're in a good position so I think there's no excuse for leaving these people behind.”
With regards to the Federal Government, she states that they really have the power to
improve these people’s lives through increased Centrelink payments:
“Because the rate that they're set at, at the moment, is actually below the poverty
line, so people on those allowances are actually behind the eight ball from the start.”
At the Federal level, the Australian Labor Party is promising a review of welfare payments
if elected, but has not committed to increasing them. The current government says its focus
is on helping unemployed people move into the workforce, but obviously, for a person
in the 50s or 60s, this is easier said than done.
Mr Boyd is a bit cynical about politicians’ promises. He stated:
“Before an election, politicians will say anything and after an election, promises are
just scrapped. I look upon Gladys [Berejiklian] as Marie Antoinette — let the little people
eat cake. In terms of people doing it tough she's in another world.”
Ms Quilty says that the NSW Council of Social Service have undertaken cost of living surveys
stating that dental care is by the far most unaffordable essential item. She stated:
“Strategies like forgoing medical treatment and medicine, we also hear that they skip
meals and limit their use of the car.”
Priscilla Meyer’s mother, Allison Williams, thinks that her daughter's generation are
more financially stretched than when she was a young parent. She said:
“It's so much harder now — they both have to work full time and if they don't there's
not enough money to try and save, plus childcare is so expensive, travel is so expensive.”
Associate Professor Ben Phillips from Australian National University's Centre for Social Research
& Methods said that NSW standards of living started to plateau around 2013.
“Over the last 30 years we have had living standards increase very strongly by say 60,
70% both in NSW and Australia. The last 10 years things have turned though.”
Both major parties are making campaign promises to help out cash-strapped Sydneysiders. The
Berejiklian Government have been rolling out various schemes such as $300 baby bundles,
and free car registration to those who spend $25 or more per week on Sydney toll roads.
The State Opposition are promising to give school children free bus travel, and provide
solar panel rebates if elected.
Independent polling analyst, Andrew Catsaras, stated:
“When you're promising to do something about the cost of living, it's almost like promising
people you're going to do something about ageing. It really is a very nice promise to
make but whether or not you can actually deliver is another thing all together and I think
voters see it that way. In small pockets with particular offers it may make a difference,
but across the board I don't think it makes much difference at all.”
I’d like to finish this video with a breakdown of what the average Sydneysider actually spends
their money on. Between 2008 and 2018, the biggest increase in spending was with medical
expenses, which have increased from 2.8% of household income to 4%.
The second biggest increase was with international holidays, which increased from 2.2% in 2008
to 3% of their income.
Household maintenance increased from 2% to 2.7%. Childcare expenses increased from 0.8%
to 1.4% of income. And the fifth biggest increase came with restaurant meals, rising from 2.8%
to 3.4% of household income.
Although the media have been playing up the cost of energy, which has almost doubled over
the last ten years, people are actually using less. People have quickly adapted their behaviour.
It turns out that petrol prices are lower than they were ten years ago, so not as much
household income is being spent on fuel.
Housing is by far the biggest expense, but it turns out due to lower interest rates,
it hasn’t jumped as much as other areas.
So there we go. Sydney has become unaffordable for the average Aussie. What are your thoughts?
Should people just pack up and move to a cheaper city, leaving their family and friends behind?
Or should people force the government to act to stop putting money before people? Or, will
Sydney just crash and burn and become Australia’s next ghetto? Let me know what you think below.