Sydney's High Housing Costs Drive 8.6% Drop in Birth Rates Amid Australia's 'Baby Recession'

July 24, 2024
Sydney's High Housing Costs Drive 8.6% Drop in Birth Rates Amid Australia's 'Baby Recession'
  • Australia recorded 289,100 births in 2023, a 4.6% decrease from the previous year, with Sydney facing the largest decline of 8.6%.

  • High housing costs in Sydney are influencing couples to opt for fewer children, preferring one or two kids due to limited suitable housing for larger families.

  • Lower birth rates in Australia are attributed to environmental concerns, increased career opportunities for women, financial constraints, and a trend towards smaller families.

  • Cost-of-living pressures and housing affordability issues, especially in Sydney, are significant deterrents for people in New South Wales to have children.

  • Inner-city Sydney suburbs like Chippendale, Darlinghurst, and Newtown exhibit extremely low fertility rates, with over 90% of Sydney suburbs falling below the replacement level.

  • Suburbs with more affordable housing in outer Sydney regions, such as Spring Farm and Schofields, are observing higher fertility rates, with these areas recording the most births in 2023.

  • Concerns arise regarding a potential population imbalance in Australia due to a declining birth rate and an aging population, raising worries about a shortage of workers to support the elderly.

  • KPMG analysis indicates a notable decrease in birth rates in Sydney, labeling it a 'baby recession' influenced by increased inflation and rising interest rates.

  • Australia's population growth now heavily relies on overseas migration rather than natural increase, highlighting the impact of declining birth rates.

  • Government efforts to boost birth rates in Australia include extending paid parental leave and reducing early childhood education costs.

  • Metropolitan Perth experienced a 6% decrease in birth rates, while regional Western Australia saw an 8% decline, reflecting a broader trend of declining birth rates in urban and regional areas.

  • Regional areas in Australia have shown a minimal 0.3% decline in births since 2019, in contrast to the more significant drop observed in urban centers like Sydney.

Summary based on 2 sources


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Sources

Sydney’s ‘baby recession’: Where births have plunged most

The Sydney Morning Herald • Jul 23, 2024

Sydney’s ‘baby recession’: Where births have plunged most

Baby drought is bad for the economy

The West Australian • Jul 23, 2024

Baby drought is bad for the economy

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