According to a new report titled ‘Getting Keys in Doors’, these planning obstacles are adding $165 million annually to housing costs and extending construction timeframes by up to 180 days for some projects.
HIA NSW Executive Director Brad Armitage said the current system is unnecessarily complex and filled with avoidable delays.
“Our dated and complex planning system is littered with speed bumps that could easily be removed,” Mr Armitage said.
The report outlines 21 recommendations to streamline the housing delivery process, with more than half requiring no regulatory changes and most achievable within six months at no cost to government.
Mr Armitage said that redundant approval processes are a key issue slowing down housing delivery across the state.
“For example, why is it that after rezoning, master planning, subdivision approval, and house approval; we then need to get another approval for a driveway? Did no one know a driveway would be built?” Mr Armitage said.
“The goal should be ‘one house – one approval’.”
The financial impact extends beyond the direct costs identified in the report, as homebuyers face additional mortgage and rent payments while waiting for their homes to be completed.
HIA has called on the NSW Government to collaborate with industry stakeholders to address these barriers, emphasising that many solutions are readily available and could be implemented quickly.
“HIA supports reforming the planning system to be simpler and more certain, but in the meantime, there is a litany of pinch points which add time and cost to delivering housing,” he said.
“Those barriers could be addressed quickly at zero cost to government.”
The association believes that removing these obstacles is crucial to addressing the state’s housing supply challenges and making homes more affordable for NSW residents.
Industry experts note that streamlining these processes would benefit not only developers and builders but also homebuyers who ultimately bear the costs of these inefficiencies through higher prices and longer waits.
Mr Armitage said that the HIA is ready to work with government officials to implement these changes and improve housing outcomes across the state.
“HIA stands ready to work with the Government to make that happen,” he said.
The report comes amid growing concerns about housing affordability and supply shortages across NSW, with many industry groups calling for reforms to increase housing production.
“To deliver the homes we need, it is imperative to simplify the system and make it much easier for industry to get on with the job of getting keys in doors,” Mr Armitage said.
