Thousands of NSW public sector workers are facing severe housing stress, with many just one rent or interest rate rise away from losing their homes, according to a major report published by the PSA CPSU NSW.

The union is using new survey data to argue that the housing crisis has become a direct threat to the delivery of essential services, warning that workers across government agencies and bodies such as universities and TAFE colleges are increasingly unable to afford to live near their jobs.

The union’s 2026 housing affordability report, based on responses from more than 5000 members, found nearly two-thirds of respondents are in housing stress, paying more than 30 per cent of their income on accommodation.

“This includes frontline staff such as child protection workers, prison officers and school support staff, many of whom are in stable, full-time employment but still struggling to secure housing,” said General Secretary Stewart Little.

The report found some workers reported being homeless despite having jobs, while others said they were forced to choose between paying for housing, food or medical care. Long commutes and overcrowded living arrangements are also becoming increasingly common.

“The findings demonstrate that housing affordability is no longer just a social issue but a workforce crisis with broad implications for communities,” said Mr Little. “If public servants cannot afford to live within a reasonable distance of their workplace, it directly impacts the services they provide.”

The union is also highlighting how the crisis disproportionately affects vulnerable groups within its membership. Women more than 45 years old are particularly at risk of long-term housing insecurity, with many facing the prospect of renting into retirement.

As part of its campaign, the PSA CPSU NSW is calling for a major expansion of public housing, arguing that reliance on the private rental market has failed to meet the needs of essential workers.

It is also pushing for broader reforms, including changes to housing tax settings, better use of public land for development, and investment in alternative housing models such as build-to-rent schemes.

The union has framed its campaign around a simple message: essential workers should be able to afford to live in the communities they serve.
It warns that without significant policy changes, the housing crisis will continue to undermine recruitment and retention across the public sector, placing additional strain on already stretched services.

“This is no longer just about individual hardship,” the report says. “It is about the sustainability of the public services that communities rely on every day.”