Urban Development Institute of Australia NSW (UDIA) notes that building approvals data released today by Australian Bureau of Statistics shows annual building approvals tracking at 45,050 – which is still at least 40% below what is needed to deliver NSW Housing Accord target of 377,000 new homes.
These approvals still don’t exceed the number of completions required to meet the National Housing Accord target. Even if every home that was approved, proceeded to construction and completion, we would still be short of the target. This is a clear indication that a lot more work will be required to get our housing supply back on track.
“NSW continues to produce too few homes. The NSW Government must embark on further legislative changes and increasing infrastructure funding” said Stuart Ayres, CEO, UDIA NSW.
“While the Housing Delivery Authority offers some reprieve, it is really only accelerating projects that were already in the housing supply pipeline. We need to see a wave of new projects lodged in the planning system. For this to happen we need to address project feasibility issues and ensure development sites are serviced with housing enabling infrastructure, otherwise development activity will continue to languish,” said Stuart Ayres.
UDIA continues to advocate strongly for mechanisms that will accelerate the delivery of housing and provide the investment certainty needed for projects to be progressed.
“With increased pressure on the NSW State budget it makes sense to take burden off Government finances and let developers deliver more critical housing enabling infrastructure. We urgently need a Works in Kind policy framework here in NSW that allows developers to deliver infrastructure directly, instead of making monetary contributions, and in doing so accelerate development timelines and housing delivery.
UDIA is also calling on the NSW Government to make targeted and strategic upfront investments in critical infrastructure, that will immediately unlock new homes.
“Our Building Blocks research reports have identified around 80,000 new homes that could be unlocked in the next five years with a targeted investment in key infrastructure projects like roads and sewer upgrades. We need housing enabling infrastructure investment upfront, because without it, development stalls,” said Stuart Ayres.
Source: UDIA NSW; ABS
“Building approvals remain our best indicator for future supply. 2025 needs to be the year of the turnaround, otherwise we will be one year into the National Housing Accord without any confidence that there is a sufficient pipeline of housing coming forward,” said Stuart Ayres.
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Media enquiries: Deanna Lane, Director Media & Communications Urban Development Institute of Australia NSW (UDIA)