Sydney: State of the City 2026

Sydney has always been shaped by bold decisions backed by long‑term vision. Nearly a century after the Harbour Bridge redefined the city’s physical and economic landscape, connecting north and south, Sydney once again stands at a pivotal moment. Strong growth, investment and change across the city calls for bold action, ensuring we fully realise the potential from these investments as the east and west become more interconnected.

Produced in collaboration with the Committee for Sydney, the State of the City 2026 report provides a data-driven baseline of Sydney’s current state and the bold commitment required to ensure the city is competitive, liveable and fair.

Sydney has strong foundations, and system‑level reform will secure its long‑term resilience and shared prosperity.

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Key highlights

Mobility

Sydney’s transport network is undergoing major transformation, and public transport usage has returned to pre‑pandemic levels, despite more than a third of the workforce continuing to work from home. Buses now account for over 350 million trips, becoming the leading mode of transport across the city. Metro usage reached 72 million trips in 2025, requiring greater connectivity that cannot be achieved by commuter car parking alone.

Sydney needs a comprehensive and integrated transport network, combining rail networks for connectivity, commuter car parks for convenience and accessibility, and an improved expansive bus network to connect people to where they live, work and play.

BDO’s project and infrastructure advisory specialists partner with government, sponsors and developers to deliver successful projects across all major transport infrastructure asset classes, including rail, roads, buses and active transport. Learn more about how we can support your project at any stage of the project lifecycle.

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Housing

Sydney’s housing system needs greater reform. While completions have increased, they remain below long‑term averages and family‑sized homes are becoming harder to access - most family‑sized homes exceed the 30 per cent affordability threshold. Overcrowding is occurring as a result as Sydneysiders flock to smaller, more affordable apartments with a preference of close proximity to major transport hubs. Government and industry collaboration has achieved notable progress in social and affordable housing, and a similar approach could increase the supply of family-sized apartments where needed.

BDO’s real estate and construction specialists work with developers, community housing providers, domestic and international REITs and beyond to navigate and help address the complexities of Sydney’s housing market.

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Resilience

Climate risks and costs are intensifying across our city. Natural disasters have more than doubled in frequency and insurance premiums have risen significantly, requiring bold planning decisions to meet critical energy and water demands. Sydney is the beneficiary of the majority of data centre investment in Australia, following only the United States by volume globally. Data centre supply and demand is growing exponentially, with electricity consumption expected to increase from 3 TWh (5 per cent of total energy) currently to over 17 TWh (18 per cent of total energy) in 2050. R&D in sustainable data centre technology and scaled investment in water infrastructure are critical to safely and sustainably solidify Sydney’s position at the forefront of data centre investment into the future.

Sydneysiders are taking sustainable energy consumption into their own hands. NSW saw record uptake of household solar batteries since mid-2025, with residents in Greater Western Sydney leading the charge. However, more must be done to ensure resilience in the face of climate risk. Two key areas requiring risk mitigation are fire protection in bushfire-prone areas, and preventing further development on flood-prone land.

BDO’s natural resources & energy team help government and businesses navigate the global energy transition. We advise on corporate sustainability, the commercialisation of clean technology, and project delivery across a breadth of renewable technology classes, including battery energy storage systems.

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Economy

Sydney remains Australia’s largest and most complex urban economy. Services account for 93 per cent of Sydney’s Gross Regional Product (GRP), driven by professional services, finance, health, wholesale and retail trade, construction, transport, postal and warehousing.

Sydney is the leader in venture capital of Australia and the third largest recipient of investment in the region, behind only Shanghai and Bengaluru. With this investment, the city has produced 17 unicorns with another 28 in the pipeline. Additionally, more than 4,000 innovation-intensive firms now employ more people than agriculture and mining combined in NSW. This is expanding rapidly, growing 20 per cent between 2020 and 2023.

However, labour productivity is reducing gradually over time, a trend that needs to reverse to maintain Sydney’s living standards and global competitiveness.

BDO’s economics advisory team assist with project and program evaluations, bespoke modelling and impact analysis, and a wide range of other economic and social research services, collaborating with all levels of government to support key decision-making.

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Culture

Sydney’s cultural landscape is growing, driven by the expansion of public transport to enable movement across the city after dark, with new cultural businesses emerging in Western Sydney, including Camden, Blacktown, Liverpool and The Hills. Targeted investment in cultural infrastructure continues to bolster economic vibrancy and quality of life.

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Fairness and equity

A growing ageing population, disparities in aged‑care access, and rising insurance costs are placing pressure on vulnerable communities and driving a greater need for residential aged care beds. The areas seeing the greatest reduction in aged care beds since 2017 include the Inner West, Strathfield and Burwood. Ensuring the benefits of Sydney’s growth are shared equitably is critical to long‑term social and economic stability.

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Read the report

To explore more insights into the state of the city, and where we need to focus for a more connected and future-ready city, download the State of the City report now.

Download the report

Unlock Sydney’s future with expert guidance

Bold strategies, informed decisions and targeted investment will be essential to ensure all Sydneysiders can enjoy a sustainable future, strongly connected communities, and access to the places they want to live and thrive.

BDO’s Project & Infrastructure Advisory team helps government, industry and investors make bold, evidence‑based decisions across complex city‑shaping projects, from strategy and business cases with tailored funding models, to delivery and evaluation to help unlock value. Contact us today to see how we can support your business.