Deputy Prime Minister Barnaby Joyce has suggested Sydneysiders are opting for "incredibly expensive" homes because they want views of the Opera House and Harbour Bridge.

Key points: Barnaby Joyce says Sydneysiders who cannot afford housing should move to regional and rural areas

Barnaby Joyce says Sydneysiders who cannot afford housing should move to regional and rural areas NSW Labor leader says Deputy PM's comments "out of touch"

NSW Labor leader says Deputy PM's comments "out of touch" Anglicare unsurprised about new survey's results, says low-income earners are facing rental stress

The Nationals leader told ABC RN Drive that those who cannot afford a home in Sydney should consider moving to regional and rural areas, where it is cheaper to buy property.

Mr Joyce made his provocative comments after being questioned about a new survey which rates Sydney's housing as less affordable than New York or London and whether the Government was doing enough to address the issue.

It also comes a day after the State's new Premier Gladys Berejiklian vowed to improve housing affordability and said she wanted to "make sure that every average hard-working person in this state can aspire to own their own home".

"We believe that houses will always be incredibly expensive if you can see the Opera House and the Sydney Harbour Bridge, just accept that," Mr Joyce said.

"What people have got to realise is that houses are much cheaper in Tamworth, houses are much cheaper in Armidale, houses are much cheaper in Toowoomba.

"I did move out west so I can say this, if you've got the gumption in you and you decide to move to Charleville — you're going to have a very affordable house.

"But if you say 'well I want a really affordable house in Mosman', yeah well don't we all."

World's least affordable cities Rank City 1 Hong Kong 2 Sydney, NSW 3 Vancouver, Canada 4 Santa Cruz, USA 5 Santa Barbara, USA 6 Auckland, NZ 7 Wingcaribbee, NSW 8 Tweed Heads, NSW 9 San Jose, USA 10 Melbourne, VIC

When challenged on his comments as not reflecting the vast majority of Sydneysiders, he conceded that homes across Sydney were "incredibly expensive" and beyond the reach of many and suggested they move to regional areas to buy a home they could afford.

"Little old bush accountant, a very simple rule of thumb for me was that you add up all the income in your household and you multiply it by three and that's about the value of the house you should be looking at," he said.

"Now we see in Sydney it's 12 [times the average income] and that of course means it's basically beyond the potential of many people to buy.

"But … there are lots of places [to live] in Australia and my family had to make the choice to go out west and make your way.

"I get annoyed when people talk about that the only house apparently that you can buy is in Sydney, and it's too dear.

"There are other parts of Australia, I live in one and it's called Tamworth."

He argued that the Federal Government was "doing things" to advance home ownership.

Joyce's views on Sydney home-owners 'simplistic', says Labor

NSW Labor leader Luke Foley said Mr Joyce's comments were "completely out of touch" with the vast majority of Sydneysiders.

"There are over 2 million residents in western Sydney and they're not looking for harbour views, they're just looking for a place to call their own," he told the ABC.

"And currently, a nurse married to a copper; that couple can't afford to buy a first home in Sydney on the salaries they're on.

"Relocating to regional areas is something that occurs all the time. It can be a very good thing for people. They ought to be encouraged to do so.

"But the notion that Sydney can just empty itself, leaving those people with harbour views to remain only, is just living in a fantasy world, quite frankly.

"It's way too simplistic, he's completely out of touch with the lives of millions of Sydneysiders."

Low-income earners facing 'rental stress': Anglicare

Welfare agency Anglicare said it was unsurprised by the new survey showing housing affordability in Sydney was dire.

It urged the new Premier to do more to assist low-income households, especially by boosting public and social housing stock.

Anglicare's manager of advocacy and research, Sue King, said those on benefits and low wages who would never be able to afford to buy into the housing market were spending up to 60 per cent of their income on rent.

She said they were in rental stress and were turning to the welfare agency for basic such as food and help with bills.

"For most people who are coming through our doors, they haven't got even $500 in their bank for savings so there's no way they are going to be able to put a deposit on a house or make the mortgage repayments," Ms King told the ABC.

"If you raise the public housing stock, that will reduce the pressure on the private rental market."

But she questioned Mr Joyce's suggestion that those who could not afford Sydney prices should simply move to the country, where houses are cheaper.

"People need to move to where the jobs are and increasingly in regional and rural areas we know that there's been a problem with people being able to get work," she said.