Today’s data from ABS showing annual housing completions continuing to fall provides a worrying insight into the enormity of the challenge for NSW to deliver its share of the National Housing Accord target of 377,000 new homes over five years.
For the 12 months to March 2024, NSW recorded just over 45,600 newly completed residential dwellings. This is the second lowest number of completions in the last nine years in NSW and puts 40% behind the annual target of 75,000 new homes a year.
“Every quarter that we see a decline in building activity makes it that much harder to achieve the housing targets,” said Stuart Ayres, CEO, UDIA NSW.
While much of the Government’s housing policies target apartment developments, the feasibilities for these projects have never been more challenged and we cannot afford to wait two years for the Government’s Transport Oriented Development and Low and Mid-Rise Policies to deliver at the level that is hoped.
As the graphs below reveal, all typologies are impacted, which shows why there must be levers pulled at all levels to kickstart the industry back into the activity seen in peak periods around 2018.
Source: ABS, UDIA NSW
Note: The ‘Housing Accord Target’ by typology is based on UDIA assumptions of how much each typology will need to deliver to reach 75,600.
“This is an early warning to government that it needs to do more to get housing going in NSW.”
“Government needs to be pulling more policy levers to get the housing market re-started and not wait for a response that may not occur in a few years’ time.”
“To get commencements moving Government needs to review development contributions paid by home buyers, fast track support for development financing and accelerate rezonings in areas where there are motivated landholders who can deliver new homes quickly,” said Stuart Ayres.
While UDIA was encouraged to see the release of Council League Tables last week, it did reveal some early indicators of how intense the housing challenge will be on a Council-by -Council basis.
It is in the Government and industry’s best interest to continue striking away red tape constraints during this time where we need all parts of the housing market to fire immediately. There is more to do, and industry stands ready to work collaboratively with the Government on other policy initiatives that can accelerate housing supply.
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Media Enquiries: Deanna Lane Director of Media & Communications,
0416 295 898 dlane@udiansw.com.au