Addressing the Housing Crisis
Housing is the biggest single cost of living pressure people are dealing with right now, with mortgage payments or rent the largest expense for most households.
But housing supply isn’t keeping up with demand.
Last year NSW recorded fewer overall completions than Victoria – despite NSW’s higher population, producing about six homes for every 1000 people each year, compared to eight in Victoria and nine in Queensland.
Despite NSW having the largest population, the largest expected increase in population, the highest rents and the highest medium house prices, NSW is last on the east coast when it comes to housing completions.
NSW completed 48,000 new buildings in 2022. This was behind Victoria with 59,000 completions – despite our state’s higher population.
The NSW Labor Government also inherited development application processing times that had slowed to an average of 116 days in March 2023.
The housing supply shortfall is behind Sydney unit rents increasing by 24 per cent over the year to the end of September 2023, along with house rents lifting by 11 per cent.
Back in the early 1980s, the average house in Sydney cost $78,900, or about five times a full-time average wage. Now, the price of a typical Sydney house is 17 times more expensive and is 14 times the average income.
The NSW Government believes if we are going to tackle this crisis, to create more housing supply that will drive down the cost of renting or make buying a home more affordable, we need more homes, our city will have to change.
The Government plan included a Transport Orientated Development Program, Low and Mid Rise Reforms, and Building Well-Connected Communities.
More details are available here.