According to the report, in recent years, thousands of young people have left Sydney for other areas of New South Wales, resulting in Sydney losing far more young families than it gains.

Specifically, between 2016 and 2021, the population of people aged 30 to 40 who left Sydney doubled, with 35,000 people arriving in Sydney but 70,000 people leaving. Productivity Commissioner Peter Achterstraat pointed out that high house prices are one of the main reasons young people are leaving Sydney.

He stated that many young families choose to leave Sydney because they cannot afford the high cost of housing or can only afford to buy homes in outer suburbs with longer commuting times. This phenomenon is causing Sydney to lose a large portion of its middle-aged population, and without action, Sydney could become a "city without grandchildren."

To address this issue, the report calls for increased housing density to make Sydney a more affordable place to live. According to the report, building more housing in inner suburban areas of Sydney can increase productivity and wages, reduce carbon emissions, and protect land and green spaces.

The report also notes that between 2017 and 2022, allowing for taller buildings could add 45,000 housing units without increasing land usage, thereby lowering house prices and rents and saving residents money.

Additionally, the report emphasizes a range of social benefits, including providing good schools, high-quality open spaces, more goods and services, and more time spent with friends and family. Furthermore, sensible housing planning can also mitigate climate change, as residences near the coast will not be as affected by extreme heat.

However, the report also highlights some constraints hindering housing construction, such as the spread of Heritage Conservation Areas (HCAs) restricting new housing construction. In some premium suburbs, over half of residential land is covered by HCAs, reducing the amount of land available for new housing.

Therefore, the report calls for a re-evaluation of heritage restrictions on housing near the central business district and seeks to address the impact of these restrictions on housing prices and supply.