The National Housing Supply and Affordability Council’s State of the Housing System 2025 report has highlighted the NSW Government’s planning reforms as crucial to meeting ambitious housing targets under the National Housing Accord.
According to the report, planning approvals in NSW are now 15 per cent faster than under the previous government, with applications up 28 per cent compared to the same period last year.
More than 70,000 homes are currently under construction across the state.
The Minns Government’s Low and Mid Rise policy is expected to deliver 112,000 homes over the next five years, while the Transport-Oriented Development program aims to create 231,855 homes.
The report forecasts the country to build 938,000 homes over the period to June 2029, up from the 903,000 homes previously forecast but short of our welcome 1.2 million new homes target by 262,000 homes
These initiatives, combined with investments in social and affordable housing, form part of what the government calls “an ambitious planning reform agenda.”
The report indicates that dwelling prices and rents increased in 2024, though at a slower rate than in 2023.
It also said that if the government’s Transport-Oriented Development and Low and Mid Rise policies are fully implemented, and if macroeconomic conditions stabilise, NSW could meet its share of the Housing Accord target.
Rising financing and construction costs have reduced the financial feasibility of new residential construction projects in 2024, limiting the number of dwelling approvals, commencements, and completions throughout the state.
The NSW Government has acknowledged the challenges in meeting these targets but remains committed to increasing housing supply.
After what it describes as “a decade of inaction on housing from the previous Government,” the Minns administration is working with industry and councils to speed up assessment times.
The recently established Housing Delivery Authority aims to streamline the development of major housing projects by reducing the complex development applications that councils must assess.
This forms part of a broader strategy to create new and streamlined planning pathways.
Minister for Planning and Public Spaces, Paul Scully, said the challenge ahead is large.
“The Minns Labor Government inherited a system that was working against achieving the Housing Accord targets,” Mr Scully said.
“It was also never assumed that, given macroeconomic conditions and the costs of construction, it would be a straight line between now and mid-2029.
“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.”
