Housing Affordability Crisis Threatens NSW Teacher Supply

Sydney - Skyrocketing property prices have emerged as a systemic threat to the New South Wales education system, with a new report revealing that median house prices in Sydney now exceed 13 times a teacher’s annual salary.

The report, "Addressing teacher supply through key worker housing", released yesterday,Thursday April 16, by the Australian Public Policy Institute (APPI), warns that the state’s inability to house its educators near their schools is undermining recruitment and retention, particularly in metropolitan and disadvantaged areas.

"There is little point attracting and training teachers if they can’t afford to live near where they’re needed," said lead author Professor Scott Eacott from the University of New South Wales (UNSW) Sydney’s School of Education.

"Housing affordability has become a systemic risk to school staffing across NSW. This is no longer a regional or rural issue, it’s a statewide problem," he said.

The research, conducted by academics from UNSW, the University of Sydney and Deakin University, highlights a drastic departure from the traditional affordability benchmark, where housing costs are ideally capped at three times an individual’s income.

The current 13-to-1 ratio has forced educators into grueling commutes, increasing burnout and instability within school faculties.

The financial toll extends beyond the individual as the report estimates that replacing a single teacher who leaves the profession costs the taxpayer more than A$25,000.

"Teachers are working longer hours, travelling further and carrying the strain," Prof. Eacott said.

"When housing pressures go unaddressed, retention collapses," he said.

The report calls for a fundamental shift in how the government views teacher accommodation, arguing it should be classified as "essential public infrastructure" rather than welfare.

While the NSW Teacher Housing Authority currently exists, its reach is limited to just 1.7 percent of the workforce and is almost exclusively focused on remote regions.

To mitigate the crisis, the researchers proposed establishing key worker housing as a formal asset class and expanding supply through diversified models, including build-to-rent developments and shared equity schemes similar to those used by the Defence Force.

Co-author, Professor Chris Pettit, Director of the City Futures Research Centre at UNSW, said data integration is key to solving the shortage.

"We already have powerful tools to identify where housing stress and workforce shortages intersect," Prof. Pettit said adding that "With better data integration and modelling, government can anticipate problems before they reach crisis point."

The authors conclude that without immediate intervention, the state’s goals for educational excellence and equity will remain out of reach.

"Teacher housing is no longer a niche concern," Prof. Eacott said.

"If NSW is serious about equity, excellence and educational outcomes, it must ensure teachers can afford to live where they work," he added.