By DAN RYAN
The latest State of the Housing System report has unveiled serious setbacks to meeting housing targets across the state.
The report emphasised the need for ongoing reform and investment in the NSW planning and housing sectors, as well as highlighting the role of the state government planning reforms in helping reach their target under the National Housing Accord.
Minister for Planning and Public Spaces, Paul Scully, said the costs of construction and delays in planning placed NSW on the back foot to meeting Housing Accord targets.
“We are turning around the system. Planning approvals are 15 per cent faster today than they were in March 2023, the number of applications lodged is up 28 per cent on the same time last year, and NSW has the most homes under construction in the country,” he said.
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“There are thousands more homes and DAs being finalised that are embracing our planning reforms such as the Housing Delivery Authority and the Low and Mid-Rise policy. We’re building a pipeline that will deliver homes.”
Mr Scully said the government is focused on making the delivery of new housing cheaper by speeding up the approval of new homes. He said government has seen momentum build along the housing pipeline, with planning approvals now 15 per cent faster than under the former Government, the number of applications lodged is up 28 per cent compared to the same time last year, and more than 70,000 homes are under construction.
Planning reform agendas aim to deliver 112,000 homes over the next five years and the Transport-Oriented Development (TOD) program, 231,855 homes. As well as the largest investment in social and affordable housing in the state’s history. The report acknowledges the work undertaken by the Government to increase lodgements, approvals, and completions.
The NSW government made clear that it will be difficult to meet the targets, but it is committed to pulling all levers to deliver more homes.
Working with industry and councils to speed up assessment times, government bodies have also created new and streamlined planning pathways that allow a proponent to choose between working with a council or the State Government to progress their proposals.
This is all part of the Minns Government’s plan to build a better NSW with more homes and services, so young people, families, and key workers across the state have a place to call home, in the communities they choose.
“The State of the Housing System report shows us that we have our work cut out for us, but as a government we’ve got our priorities right,” Mr Scully said.
Key findings from the report include:
Dwelling prices and rents rose in 2024, but at a slower rate than in 2023.
The supply forecasts do not directly incorporate the impacts of recent state government policy measures related to land use reform, such as the Low and Mid Rise (LMR) policy or Transport-Oriented Development (TOD).
If TOD and LMR are included, and macroeconomic conditions stabilise, the report indicates housing supply in New South Wales could approximately meet its respective share of the Housing Accord target.
States and territories are progressing initiatives to reform land use and planning systems and to speed up approvals through the National Planning Reform Blueprint.
The recently established Housing Delivery Authority in New South Wales will streamline the development of major housing projects by reducing the number of complex development applications councils are required to assess.
Rising financing and construction costs reduced the financial feasibility of new residential construction projects in 2024, limiting the number of dwelling approvals, commencements, and completions.
