New research released today reveals a softening trend in the cost of living and housing concerns that have gripped Sydneysiders and dominated political debate.

Life in Sydney, an annual survey of 1,000 Sydneysiders from all walks of life and conducted in the first week of January 2026, charts the most pressing issues on the minds of Sydneysiders. 

Developed by the Committee for Sydney and Ipsos Public Affairs, the report spans issues from urban density and housing challenges to our changing communities and the vision for Sydney over the next 20 years. 

Matt Levinson, Head of Corporate Affairs at the Committee for Sydney, said: “Far and away the most pressing issues on the minds of Sydneysiders this year are the cost of housing and living. But take note of the trend – we’re seeing an overall softening in cost-of-living concerns, and that’s very encouraging.” 

“Sydney’s got so many of the things people want – but if you’re worried about putting food on the table or paying rent, it’s hard to look up and feel great about the good things on offer. As that pressure lifts, we see an upswing in positive feelings towards the many cultural and recreation options, great public spaces and cultural facilities we have access to.” 

Stuart Clark, Director at Ipsos Public Affairs, said: “While concerns around housing have dropped overall in the last 12 months, we’ve observed a significant uptick in young people’s aspirations for owning their own home.”  

“At a time when home ownership is increasingly out of reach for many, this is concerning. The good news is, there is strong and growing support for building more houses and apartments to drive down the cost of housing.”  

Key Life in Sydney results on the cost of living: 

• Top issues on the minds of Sydneysiders are the cost of living (62%) and the cost of housing (52%)  
• One in five Sydneysiders are finding it quite difficult or very difficult financially, and a quarter say they have to go without essentials on a regular basis
• Overall concerns around cost of living are softening – from 65% to 62% since 2025 
• Sydneysiders who feel more confident about their finances, tend to also feel more positive about: 
  • The diverse range of retail, leisure and dining experiences (up 7%), access to nature (up 9%), access to great public spaces (up 10%), access to cultural facilities (up 10%) 
  • Access to town centres with all the necessities (up 6%), a diverse range of family-friendly activities (up 5%), healthy and active neighbourhoods that support walking and cycling (up 6%). 

• Concerns around housing and the price of housing have dropped slightly since last year – down 5%. However, home ownership is still a major aspiration for young people.
  • For Gen Z alone, there’s been a 28% increase over the last two years in young people saying it’s important or essential that they can own their own home one day. 

With this research conducted start of January 2026, soon after the Bondi Beach attack, the data shows growing concerns around social cohesion, safety and the stability of neighbourhoods.  

Rising concerns around social cohesion over the last 12 months: 

• Concerns around crime and anti-social behaviour rose from 12% to 21%  
• Feelings of safety decreased slightly from 50% to 48%  
• 38% of people think being a place with high social cohesion is a top 3 challenge for Sydney  
• 48% of people don’t have a significant relationship with their neighbours, with Gen Z (25%), renters (23%) and those with low social support (36%) least likely.  

Matt Levinson, Head of Corporate Affairs at the Committee for Sydney, said: “Getting along with your neighbours is one of the keys to a rich life – this data suggests it’s a luxury that like so many others is moving out of reach for young Sydneysiders and people who rent.”  

“This points to a wider issue around social cohesion – if we don’t get to know the people living next door, how can we foster strong communities? Sydney’s one of the world’s top three multicultural cities, yet we’re less and less likely to interact with those around us.” 

Read the 2026 Life in Sydney report: https://sydney.org.au/wp-content/uploads/2026/02/Committee-for-Sydney_Life-in-Sydney-2026_February-2026.pdf