A forum on affordable housing held at Casula Powerhouse heard that the problem is only getting worse in Liverpool.
The event, called Dream or Reality? Affordable Housing in Western Sydney was organised by the Western Sydney Housing Coalition, an advocacy group for housing matters in the region.
University of Western Sydney Associate Professor Michael Darcy said that the area was once known for its inexpensive housing opportunities, along with many other parts of western Sydney, but this is no longer the case.
``Now housing prices and rents are growing in Liverpool just as they are in other parts of Sydney,'' Associate Professor Darcy said.
``First-home buyers can't afford to buy many of the homes in Liverpool, or even the apartments.''
Associate Professor Darcy said that the government has a much greater role to play in the housing situation in western Sydney than just providing releasing land for development at the correct time.
``We have an obsession with buying our own home in Australia, but the current system just isn't working for us. Only 60 per cent of people are able to buy their own homes now.
``As a nation we should look at all the potential solutions on this problem.''
A report compiled after the forum called on the federal and state governments to increase their financial commitment to social and affordable housing in Sydney's west.