Here’s a harsh reality: Sydney’s plan to build more affordable housing might actually be pushing tenants out of their homes. And this is the part most people miss—while the goal is noble, the execution is leaving many residents in a lurch, facing skyrocketing rents and the loss of their communities. Take Erina Delinicolas, for example. She didn’t learn her Marrickville apartment was slated for demolition through an official letter or email. Instead, it was a casual comment from a friend over coffee: ‘How are you feeling about them demolishing your house?’ That’s when she discovered her art deco building in Sydney’s inner west could be replaced by a nine-storey block of flats, thanks to a proposed development application (DA).
Delinicolas isn’t alone in her worry. Many tenants fear they’ll be priced out of their neighborhoods, despite laws designed to incentivize developers to build affordable housing. But here’s where it gets controversial—the New South Wales ‘in-fill’ bonus scheme, which allows property owners to increase density by up to 30% in exchange for providing 15% of units at 20% below market rent for 15 years, might be doing more harm than good. After those 15 years, rents can revert to market rates, leaving tenants vulnerable to sudden increases.
Consider the high-profile redevelopment of The Chimes building in Potts Point. Studio and one-bedroom units currently renting for $350-$380 a week will be replaced by luxury apartments selling for up to $10 million. Closer to home, Delinicolas’s building on Warren Road, just 400 meters from Marrickville station, would see 17 low-cost rental units demolished and replaced with 43 mostly two- and three-bedroom units, only eight of which are designated as affordable. For context, the median rent for a one-bedroom unit in Marrickville is $500 to $720 a week, meaning ‘affordable’ units could still cost tenants anywhere from $20 to $200 more.
Here’s the kicker—while the NSW government claims the scheme is creating more affordable homes than ever, critics argue it’s a short-term fix that risks long-term affordability. Shelter NSW’s modeling reveals that developers in higher-value suburbs benefit more than renters, with the bonus value ranging from 8% to 79%. Nicky Morrison, a planning professor at Western Sydney University, points out that countries like the UK have stricter affordable housing policies, and she warns that ‘short-term incentives’ could lead to generational affordability losses.
So, what’s the solution? Developers aren’t inherently opposed to affordability, Morrison says, but they need predictable planning rules and financing frameworks. Meanwhile, residents like Madeleine Evans, who’s lived in the inner west for over 70 years, lament the changing landscape. ‘Growing up, there was always a chance for people to get housing,’ she says. ‘Now, they’re taking those chances away.’
Here’s a thought-provoking question for you: Is Sydney’s approach to affordable housing truly addressing the crisis, or is it inadvertently exacerbating it? Share your thoughts in the comments—let’s spark a conversation that could shape the future of housing in our city.
