Public sector workers in the Hunter Region are skipping meals, abandoning career opportunities and delaying starting families because of a worsening housing affordability crisis, a landmark new survey has revealed.
The Public Service Association's housing survey of more than 5100 NSW public servants, released today, paints a confronting picture of life for Newcastle and Hunter Region workers who are being squeezed out of both the Sydney and regional property markets.
Stella*, a 69-year-old Newcastle court worker, said she could not afford to retire because homelessness awaits her when she stops working.
She has been renting for 20 years.
She moved to the Hunter Region a decade ago after being priced out of Sydney, only to find the region's rental market equally unforgiving for a single person in her 60s.
"Nobody would give me a loan and nobody would give me a place to rent as a 60-year-old," she said.
Only through the intervention of a friend was she able to secure a rental.
Now, with just $60,000 in superannuation and rents in the area running between $695 and $800 per week, she believes her only option in retirement is a mobile van.
"I'm going to have to live in a van and move around," she said.
In the Hunter, 22 per cent of respondents described their housing as not secure, with seven further respondents saying they were at imminent risk of homelessness. Fifty per cent described their housing as somewhat secure.
More than 64 per cent of respondents said that they spend more than 30 per cent of their income on housing costs, the threshold at which households are considered to be in housing stress.
While 17 per cent said that they spent more than half of their income on housing.
The survey revealed housing stress was affecting workers' ability to buy groceries, with 39 per cent of respondents saying accommodation costs were impacting their ability to afford essentials.
Cost of living and rising prices are not just hitting renters but are making entry into the housing market for young buyers increasingly difficult.
Erin Richardson, a 32-year-old government worker, has been living with her parents in Newcastle for two years with her partner to save for a home deposit.
"We are delaying starting a family because of our housing situation. We'd love to get married but we can't afford it," she said.
"We need to prioritise a house above all else."
The couple recently managed to buy a house at Lake Macquarie, but it requires extensive work before they can move in.
Despite having a deposit saved, they watched prices in the area jump by $50,000 to $100,000.
"House prices were just going crazy and so it felt like we weren't making any progress each year despite saving as much as we could," she said.
"We were finding ourselves almost in a worse position in the market despite doing our best, it was just moving so fast.
"My partner was working six-seven days a week and I was doing 10-hour days."
She said they will probably have to live out of their shed for periods while their house continues to undergo renovation works to fix structural issues.
Ms Richardson works from home but commutes to her government job in Mascot one day a week - a round trip that consumes her entire day.
"Door-to-door, it takes me seven-and-a-half hours to Mascot and back. I leave Newcastle at 5.15am and get back at about 8.45pm," she said, adding she had also missed out on job opportunities because of her Newcastle address.
"It is a shattering day and it flows on through the rest of the week as you try to get back that lost time.
"It's not feasible for us to buy in Sydney. That's a pipe dream."
According to the PSA survey, 40 per cent of respondents from the Hunter commuted for more than one hour to work each day.
Four per cent said they commuted more than five hours each day.
Their stories are far from isolated.
The PSA survey, which drew responses from more than 5100 public sector workers between February and April this year, found that nearly two-thirds of all respondents - 65.5 per cent - are spending more than 30 per cent of their income on housing.
One in five are spending more than half their weekly pay on rent or mortgage repayments.
More than 42 per cent said housing costs had forced them to skip meals or delay medical and dental care.
Four workers reported being homeless at the time of the survey, with one having slept in his ute for five weeks.
PSA General Secretary Stewart Little said the crisis had moved well beyond low-income earners.
"Public sector workers are doing everything society asks of them - they are working hard, serving their communities and keeping essential services running, yet thousands are being pushed to the financial brink," Mr Little said.
"When child protection caseworkers and school staff are skipping meals, postponing surgery and living in caravans, something has gone terribly wrong."
The survey found older women are among the hardest hit.
More than 1000 women over 45 are paying more than 30 per cent of their income on housing, with many facing the prospect of renting for life and retiring into poverty.
Figures from Cotality - formerly CoreLogic - show Sydney remains the most expensive city in Australia, with the median rent reaching $824 per week in March 2026, up 5.9 per cent year-on-year.
Hunter Region rents, while lower, have surged beyond what many public servants on middle incomes can absorb.
The survey also found housing insecurity is trapping some workers in dangerous situations.
Of 62 PSA members who said they were living with an abusive partner, 47 said they could not afford to leave.
The PSA is calling on state and federal governments to urgently expand public housing, cap rent increases, extend longer-term leases and develop housing initiatives specifically for essential workers.
The union is also calling for a review of capital gains tax and negative gearing settings, noting the federal budget this month announced restrictions on both concessions applying to new builds from July 2027.
Mr Little said governments could not continue to ignore the human cost of the crisis.
"These are the people we rely on every day," he said.
"No worker serving the public should be wondering whether they can afford dinner, a doctor's appointment or a roof over their head."
*Stella is a pseudonym used in the PSA report.
