Living in Sydney during a cost-of-living crisis is like shopping at David Jones on a budget and wondering why you aren’t saving money.
Sydney was this year dubbed the 10th most expensive city to live in the world, according to a report by the Economist Intelligence Unit.
Finder has also reported that the most expensive place for housing in Australia is Sydney. To put in perspective, it is 48.1 per cent higher than the cost of Adelaide which is the most affordable capital city to live in.
Sydney’s also the most expensive major city for housing and utilities. It is 36 per cent more expensive than Melbourne and 52 per cent more expensive than Hobart.
It is unsurprising news when you consider some of the most iconic things in Sydney are so expensive.
If you want to eat like a local and try the ricotta hot cakes at the popular Sydney cafe Bills, it will set you back $26.
If you want to look like a Sydneysider and buy a pair of leggings from the streetwear brand P.E. Nation, founded by eastern suburbs influencer Pip Edwards, it will cost you $99.
If you want to buy a coffee, most cafes sell them for at least $4.50 and almond milk is usually an extra $30 cents.
These are luxury things, obviously, but that is the big problem with Sydney – plenty of locals are used to living a metropolitan lifestyle with all the frills.
Locals have been hit hard by the cost-of-living crisis but that doesn’t mean they are prepared to change.
When I asked Sydneysiders what they weren’t prepared to give up – even with inflation rising at 7 per cent – their answers were very Sydney.
“Shopping at Harris Farm, I’m never stopping – the produce is better and fresher,” Shannon, 30, explained.
“Good coffee,” Troy, 36, shared.
“Sweet treats from cute cafes when I need a little pick me up,” Brooke, 30, revealed.
“Sushi and co*cktails that cost more than my meal,” Romy, 30, admitted.
“Spin classes and margaritas,” Meg, 29, shared.
“My three streaming service subscriptions. I need them to watch my shows,” Andrea, 27, declared.
“Uber Eats, eating out, buying nice make-up and skincare. I can’t help myself,” Jasmine, 29, admitted.
“Good quality chocolate but Haighs is so expensive,” Sarah, 34, divulged.
Are you sensing a theme here?
Financial adviser and managing director of privately-owned financial planning and accounting company Financial Spectrum Brenton Tong said: “It is insane here in Sydney. We just seem to have no idea. Spending is way up on traditional levels.”
“Covid really buggered things up – cheap mortgages, cheaper rent, lots of money, and spending less on commuting, travel etc,” he explained. “So a lot of people just started spending. It becomes the norm and can be hard to cut back.”
Mr Tong revealed that people in Sydney find it hard to make big changes to their spending because of the boujee lifestyles they are accustomed to.
“I’ve noticed that people are cutting back on things like restaurants, movies etc, but those smaller things like take away, Saturday breakfasts, weekends away – they’re still going strong. They’re not seen as luxuries for some anymore because they’re just a normal part of life,” he shared.
Plus there’s the ongoing issue: Sydney is filled with plenty of affluent people it is a city that has some of the most expensive real estate in Australia thanks to the incredible ocean and harbour views.
“Those with the money, don’t really care too much about what’s going on, so they’re still spending – which is making hard for those doing it tough because it’s keeping inflation higher for longer,” he revealed.
It isn’t that people in Sydney aren’t feeling the pressure of inflation they just aren’t prepared to give up on their Sydney lifestyles – at least not until their cards start declining.
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