Jun 22, 2026 – 5.00amProperty developers are struggling to make their projects stack up in Sydney’s west as construction costs rapidly rise, hampering critical residential housing supply in Sydney’s fastest-growing areas.The housing affordability crisis is pushing more residents to the outer areas of Sydney, where they have a shot at affording property, while most of Sydney’s new migrants are seeking to make the west home, too.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Lucy SladeProperty reporterLucy Slade covers real estate for The Australian Financial Review, based in the Sydney newsroom. She was previously the breaking news reporter.Fetching latest articles
Home builds are stalling in Sydney’s west as costs outstrip values
Developers are moving to affluent areas where they can make a profit on luxury apartments. If supply doesn’t pick up, essential workers may leave.
Sydney's west housing supply is collapsing as construction costs exceed valuations, forcing project suspensions in the fastest-growing region. Supply collapse in affordable suburbs threatens tech recruitment as workforce migration meets halted residential development and market contraction signals.











