With median house prices in Sydney more than 13 times a teacher's salary, housing affordability has become one of the most significant threats to sustaining NSW's teaching workforce.
A new report from the Australian Public Policy Institute (APPI), Addressing teacher supply through key worker housing, warns that rising housing costs are undermining the state's ability to attract and retain teachers, placing the quality and equity of public education at risk.
Led by Professor Scott Eacott from UNSW Sydney's School of Education with researchers from the University of Sydney and Deakin University, the report argues that teacher housing must be recognised as essential public infrastructure and calls on the NSW Government to formally establish "key worker housing" as a dedicated asset class.
"There is little point attracting and training teachers if they can't afford to live near where they're needed," Prof. Eacott said.
"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."
Housing costs outpacing teacher salaries
The report highlights the scale of the challenge facing teachers, particularly in metropolitan areas where housing costs have surged far beyond income growth. Median house prices in Sydney are now more than 13 times a teacher's salary, far exceeding the accepted affordability benchmark of three times income.
As teachers are pushed further from their workplaces, the consequences are compounding, with longer commutes, higher transport costs, increased stress and burnout and growing instability across school staffing. These pressures are most acute in disadvantaged communities, where continuity of teaching is critical.
"Teachers are working longer hours, travelling further and carrying the strain," said Prof. Eacott.
"When housing pressures go unaddressed, retention collapses – and replacing a single teacher can cost more than $25,000."
Rethinking teacher housing as public infrastructure
The research challenges the idea that teacher housing is welfare, instead reframing it as vital infrastructure that underpins the delivery of essential public services.
While NSW has a long‑standing Teacher Housing Authority, its current portfolio covers just 1.7 per cent of teaching positions and is largely limited to rural and remote areas. At the same time, income-based affordable housing programs often exclude teachers despite their growing exposure to housing stress.
To address this gap, the report makes three key recommendations.
1. Establish key worker housing as a formal asset class
Defined by the essential role workers play rather than by income thresholds. This would provide a durable policy framework for coordinated investment across education, health, policing and other essential services.
2. Expand supply through a diversified portfolio
This includes scaling up the Teacher Housing Authority, adapting proven models such as Defence Force Housing, incentivising build-to-rent developments in high need locations and supporting shared equity home ownership schemes.
3. Improve access to data
Improving access to high-quality, linkable data on housing, commuting and workforce distribution would enable government to identify staffing pressure points and target investment where it will have the greatest impact.
Evidence-driven solutions for a growing crisis
The report draws on extensive data analysis and engagement with more than 300 teachers, school leaders, policymakers and industry stakeholders. It includes modelling showing that in many parts of NSW, even dual income teaching households face decades long waits to afford a home deposit.
Co-author Professor Chris Pettit, Director of the City Futures Research Centre at UNSW Sydney, said better use of spatial and housing data could transform workforce planning.
"We already have powerful tools to identify where housing stress and workforce shortages intersect," Prof. Pettit said.
"With better data integration and modelling, government can anticipate problems before they reach crisis point and invest far more effectively."
The authors warn that without targeted policy intervention, housing affordability pressures will continue to erode workforce sustainability, particularly in high growth and metropolitan areas.
"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."
