The residence, in Dover Heights in Sydney's eastern suburbs, was doused with red paint while cars were sprayed with anti-Semitic phrases just before 4am Friday.
Residents told AAP they believe the attack to be a case of mistaken identify as Executive Council of Australian Jewry co-CEO Alex Ryvchin used to live there.
Mr Ryvchin has been contacted for comment.
Two cars were targeted in the arson and graffiti attacks. (Neve Brissenden/AAP PHOTOS)
NSW Premier Chris Minns says everything is being done to catch the perpetrators.
"This is a disgusting and dangerous act of violence that is the latest example of a rising level of anti-Semitic attacks in our community," he said.
"Civil society stands united in condemning this flagrant racism."
The state's police minister called it a "disgusting act of hatred that will not be tolerated".
"Police are doing everything they can to identify and arrest those responsible.There is no place for hatred or anti-Semitism in our society," Yasmin Catley said.
There have been no reports of injuries, police say.
"The NSW Police Force takes hate crimes seriously," a statement said on Friday.
President of the NSW Jewish Board of Deputies David Ossip said he was "profoundly disturbed and sickened to wake up to news of yet another anti-Semitic attack".
"Criminal acts like these, perpetrated by masked cowards and thugs in the dead of night, are intended to menace and intimidate the Jewish community and further fragment our social cohesion," he said.
"The hate-filled criminals who are perpetrating these crimes need to know that their campaign of domestic terrorism will not succeed, the Jewish community is resilient, strong and unbowed and will continue to be so."
The attack "isn't just an assault on Jews, it's an attack on all Australians", Zionist Federation of Australia CEO Alon Cassuto said.
"The October 7 terrorist attack and the subsequent war have unleashed unprecedented anti-Semitism in Australia which has fractured our social cohesion," he said.
"A ceasefire on the other side of the world won't stop this, our governments must act decisively at home to ensure Jewish Australians are safe."Â
The charred remains of a burnt out car could be seen outside a house splashed with paint. (Bianca De Marchi/AAP PHOTOS)
But Attorney-General Mark Dreyfus, who is Jewish, said he was hopeful a ceasefire in Gaza might reduce community tensions in Australia.
"The recent rise in anti-Semitism we've seen over the last year has been the worst that I've seen in my lifetime and it's been shocking," he told ABC radio.
"The Albanese government has pulled all of the levers it can to combat this scourge in Australia but it's rightly called the world's oldest hatred, it's hard to stamp it out."
Prime Minister Anthony Albanese has called the latest incident "another anti-Semitic attack that is against everything that we stand for".
"This is an outrage," he told ABC radio.
He welcomed the Australian Federal Police charging a man on Thursday with making death threats to members of a Jewish organisation.
"This is the first charges that have arisen from Special Operation Avalite that I established last month that continues to work to identify prolific anti-Semites causing high harm in the community," Mr Albanese said.
"That is why we set it up and it is good that these charges have been laid."
Opposition Leader Peter Dutton branded the perpetrators terrorists.
"These people are terrorists and they are targeting people to intimidate them, to scare them," he told Nine's Today Show.
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