Sydneysiders Say Yes to Higher-Density Living
- Compass Strata
- Feb 5
- 4 min read
Sydney’s skyline is changing, and so are its residents' attitudes toward apartment living. As the city continues to grow, apartments are becoming an increasingly dominant feature of Sydney’s housing landscape. The recently released "Life in Sydney 2025" report by Ipsos Australia and the Committee for Sydney provides valuable insights into how a thousand Sydneysiders feel about urban density, housing affordability, and the future of apartment living.
The Rise of Apartment Living in Sydney
One of the standout trends from the report is the increasing prevalence of apartment living. More than half (58%) of Sydney’s residents have lived in an apartment at some point in their lives, indicating a shift away from the traditional suburban home with a backyard.
Moreover, 46% of those not currently in apartments said they would consider apartment living in the future, up from 40% in 2024. This growing openness reflects changing lifestyle preferences, affordability constraints, and a recognition of the convenience that apartment living offers.
Support for Increased Urban Density
A major theme of the report is the rising acceptance of urban densification. More residents now support the development of higher-density housing in Sydney, particularly in the city’s CBD and inner suburbs. Support for increasing density in the CBD jumped from 39% in 2023 to 49% in 2025, while inner-city suburbs saw an increase from 43% to 53%.
This shift in opinion suggests that more Sydneysiders understand the need for well-planned urban expansion to accommodate the city’s growing population. The preference for better infrastructure and proximity to employment hubs is driving this change, as many residents see high-density living as a practical solution to Sydney’s housing challenges.
The Enduring Appeal of Home Ownership
Despite the growing trend of apartment living, the Australian dream of home ownership remains deeply ingrained. The report highlights that 53% of respondents now see home ownership as essential, up from 40% in 2024. This aspiration is strongest among younger generations, with 76% of Gen Z (born 1997-2012) and 66% of Millennials (born 1981-1996) considering owning a home either essential or very important.
However, with rising property prices, many Sydneysiders are adapting their expectations. Rather than the traditional detached house, more residents are viewing apartments as a viable long-term housing option. This trend aligns with a broader global shift towards high-density urban living in major cities like New York, London, and Tokyo.
Why Are More Sydneysiders Choosing Apartments?
There are several key factors driving the shift toward apartment living:
Affordability Constraints
With Sydney’s median house prices among the highest in the world, apartments offer a more affordable entry point into the property market. As housing affordability remains a major concern, many first-time buyers and young professionals are turning to apartments as a practical alternative to standalone homes.
Lifestyle and Convenience
Apartments, particularly those in well-connected areas, offer proximity to work, public transport, and entertainment hubs. This convenience is particularly appealing to younger generations who prioritise location over space.
Changing Family Structures
With more people delaying marriage and having fewer children, smaller living spaces are becoming more acceptable. Additionally, retirees looking to downsize are contributing to the growing demand for high-quality apartment living.
Sustainability and Urban Planning
As cities move towards more sustainable urban planning, higher-density developments with integrated green spaces, efficient public transport links, and mixed-use precincts are becoming the norm. Many Sydneysiders now recognise that well-designed apartment complexes can contribute to a more livable and environmentally friendly city.
Challenges of Apartment Living
While apartments offer many benefits, they also present challenges. The report highlights concerns about noise, lack of privacy, and the high cost of strata fees. Additionally, Sydney’s apartment market has faced issues with construction quality, with several high-profile cases of defective buildings raising concerns among buyers and renters alike.
To address these concerns, there is a growing demand for stricter building regulations, better tenant rights protections, and improved amenities within apartment complexes to enhance quality of life.
What the Future Holds for Sydney’s Apartment Market
Given the current trends, the future of apartment living in Sydney looks set to continue growing in popularity. Policymakers and urban planners are focusing on strategies to make apartment living more attractive, such as:
Better-designed apartments with more communal spaces and green areas
Improved public transport connections to high-density areas
Enhanced regulations to ensure quality construction and long-term livability
A shift towards build-to-rent developments to provide more secure rental options
As Sydney’s population grows, high-density living will become an increasingly important solution to the city’s housing challenges. While the dream of owning a house with a backyard remains strong, the "Life in Sydney 2025" report suggests that more residents are embracing the benefits of apartment living and supporting higher-density development as part of Sydney’s future.
As long as developers, policymakers, and city planners continue to address key concerns, apartment living in Sydney could become not just a necessity, but a preferred way of life.
To truly elevate the strata living experience, having an experienced strata manager is essential. Whether it’s handling maintenance issues, managing budgets, or fostering community engagement, a reliable strata manager makes all the difference. If you’re looking for expert strata management services, Compass Strata is here to help navigate the complexities of strata living and create a seamless experience for apartment owners and residents alike.
