Sydney's home ownership rates have plummeted to their lowest level since the 1950s, driven by a severe lack of affordable housing.This crisis has priced first-home buyers out of the market, prompting some young families to relocate from the city altogether.

A KPMG analysis, combined with Australian Bureau of Statistics data, reveals that the city's housing affordability issues are exacerbating social pressures.The research underscores the urgent need for the NSW government to accelerate the supply of higher-density housing to address the growing demand.However, this push faces resistance from some local councils and residents concerned about urban development.

The findings highlight a broader societal challenge, as rising property prices and limited supply continue to strain household budgets and housing options.

Experts warn that without significant policy intervention, the trend could deepen, further impacting vulnerable populations and altering the city's demographic landscape.

The situation also raises questions about the sustainability of current housing policies and the need for innovative solutions to balance urban growth with affordability.