|Tuesday 9 January 2024 (Sydney, Australia)
Decade-Low approval numbers show we are yet to turn the corner on the Housing Crisis in NSWUDIA NSW remains highly concerned about the state of housing in NSW following today’s building approvals update from the ABS. Approvals reported across NSW for the 12 months to November 2023 sat at 46,500, the lowest rolling annual total seen in the state since October 2013.These decade-low approvals come at a time when our nation is looking to reverse course on our housing crisis and embark on our most ambitious nationwide housing program ever. In 2023, the NSW Government committed to deliver 377,000 homes over five years as part of the National Housing Accord, commencing in June 2024, now less than 6 months away.
UDIA analysis shows that due to the time needed to go from approval to final completion, NSW needs on average, 92,000 new approvals per annum over the next 5 years to underpin our annual housing targets. This monumental uptick in approvals needs to begin now, however today’s announcement by the ABS is sobering news.
The graph below shows the steep increase needed in approvals for new houses to be built within the Accord period.
Source: UDIA NSW; ABS; Oxford Economics
Worryingly, today’s results also show declining approval numbers are not limited to a particular housing type – detached house approvals have now declined for 24th consecutive months, to a near decade low of 22,300.
Medium density approvals also hit a three-year low of 10,400, while apartment approvals, despite increasing slightly to 13,900, remain 63% below their peak, a peak which would need to be replicated and exceeded if we are to reach our targets under the Housing Accord.
“While the NSW Government finished 2023 with a series of positive policy reforms to increase housing supply, today’s numbers show we are falling further behind, before the National Housing Accord even starts,” said Gavin Melvin, UDIA NSW A/CEO.
“Today’s figures create an added sense of urgency that each of the Government’s announced new policies will be implemented successfully and delivered in full. These figures show we have no time to waste and that initiatives which can commence now, such as the affordable housing bonus, should do so allowing development applications to be submitted, approvals to flow, and new homes to be built sooner,” Mr Melvin said.
UDIA will continue to work with the Government on existing and future housing initiatives, ensuring the policy settings are right, and that industry can get on and build new homes, reversing this housing crisis before it becomes irreversible.
Deanna Lane Director, Media & Communications – National & NSW 0416 295 898 | firstname.lastname@example.org