Housing affordability is undermining efforts to address teacher shortages in New South Wales (NSW), a new report argues. Researchers from UNSW Sydney, the University of Sydney and Deakin University analysed teacher workforce and housing shortages to set out clear policy opportunities for government action.
Supported through the Australian Public Policy Institute’s (APPI) Policy Challenge Grant program, the research team led by Professor Scott Eacott outlines practical solutions to better align housing policy with workforce needs and ensure that qualified teachers can be recruited where they are most needed.
The report emphasises that overcoming this challenge will require collaboration across government, industry and the research sector to ensure the right settings, investment and evidence are in place to meet the challenges of teacher workforce sustainability. Median house prices in Sydney are now more than 13 times a teacher’s salary, forcing many teachers to live further from their workplaces, endure longer commutes and face an increased risk of burnout – factors that ultimately affect retention and student outcomes.
The report finds that establishing key worker housing as a distinct asset class would enable more coordinated and targeted policy responses by basing eligibility on the delivery of public services rather than on income. It also identifies the need to expand housing supply through a mix of approaches, including leveraging new investment models and improving the quality and integration of data to better target interventions.
Lead author Professor Scott Eacott from UNSW Sydney said the report provides a clear policy agenda centred on improving the use of housing to support workforce supply. “The challenge is securing the right teachers where they are needed. Housing is a key lever in achieving that,” Professor Eacott said. “Treating teacher housing as essential infrastructure, expanding supply in areas of greatest need and improving data used to guide investment decisions will strengthen workforce sustainability over time.”
“This research shows that housing is a critical lever in addressing teacher shortages,” said Marianna Brungs, acting Head of Social Policy at APPI. “Without targeted intervention, the system will continue to struggle to staff schools where demand is greatest.”
Through the Policy Challenge Grant program, APPI actively collaborates with researchers to maximise the impact of research on critical societal challenges facing Australia. The 2026 round remains open for applications until 8 May 2026.
