The community housing sector has called for the New South Wales Government to support a "shared home ownership" scheme, as an unprecedented property boom drives Sydney house prices out of reach.

Shared home ownership allows a person or family to partner with a community housing provider to purchase a property.

The person can buy as little as 25 per cent, with the provider buying the rest.

They then aim to increase that share over time until they eventually own the entire home.

Similar schemes operate successfully in other states like Western Australia. and Patrick Ryan from St George Community Housing said it would hugely benefit people in NSW.

"It reduces the cost of entry for particularly young families and other people to get into the housing market, that are currently locked out," he said.

Mr Ryan said research conducted by the sector indicated as many as 20,000 households would be eligible for the scheme.

One person hoping to benefit is Sydney father Claude Robinson.

He has dreamed of owning his own home for years, however with an annual income of $80,000, he has struggled to save enough for a deposit.

"It's just unobtainable to be able to rent and save up for a deposit for a property," he said.

Mr Robinson currently lives in community housing in Campsie with his wife and two children.

He said a shared housing scheme would allow him to crack an impenetrable market.

"It would give us a way into the market at a percentage we can afford, and it would give us stability."

The chief executive of the NSW Federation of Housing Associations, Wendy Hayhurst, said the scheme would benefit households on incomes as high as $120,000.

"If you think that the median price in Sydney is now $1 million and to afford to buy you need to put down a 20 per cent deposit, that rules out a very, very large amount of people, it's affecting about 60 per cent of the people in Sydney," she said.

First Home Owner Grant 'could be adjusted to support scheme'

The community housing sector has called on the NSW Government to support the scheme.

Under the current legislation, homebuyers using a shared home ownership model would not be eligible for the First Home Owner Grant, and the sector wants that to change.

"What would really help in NSW particularly is taking a close look at the First Home Owner Grant, and making some minor adjustments so that community housing providers could enter into a shared home ownership scheme, and the homebuyer could be eligible for that grant," Mr Ryan said.

He also called for land and properties to be set aside for shared homes, saying the scheme would benefit the entire community in the long run.

"There's some documented cases around mortgage default and people in private rental who experience misfortune either through health or through loss of a job or a family separation who have ultimately found themselves on hard times and knocking on the door asking for assistance for social housing."

The chief executive of the Greater Sydney Commission, Sarah Hill, said the planning body was considering a wide range of housing options.

"I think it is important we don't rule anything out, I think it is important we look at innovative ways of doing things, of designing our buildings and helping people get into the housing market," Ms Hill said.

In a statement, a spokeswoman for the NSW Government said the state had policies in place to assist first home buyers and increase social housing supply.