The first report highlighted declining home purchase affordability for Sydney’s key workers who have been priced out of the inner, middle, and many outer areas of the metropolitan region. As a consequence, many teachers, police, emergency workers, and nurses are commuting long distances to get to work, or are living in unaffordable rental accommodation.

In this context, this report identifies opportunities to help restore housing options for key workers in Sydney through a series of potential market innovations and policy interventions. The focus is on home purchase opportunities. Like many Australians, home ownership has been a traditional aspiration for professionals working in key worker occupations. Historically, that aspiration has generally been achieved. Although on moderate wages, key workers have been able to service mortgages as owner-occupiers (supported by stable employment conditions and steady incomes). However, very high house prices and large deposit requirements present new barriers, particularly for younger key workers.